Quite a few insiders have dramatically grown their holdings in Gates Industrial Corporation plc (NYSE:GTES) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Gates Industrial

Gates Industrial Insider Transactions Over The Last Year

The Independent Chairman of Board Neil Simpkins made the biggest insider purchase in the last 12 months. That single transaction was for US$12m worth of shares at a price of US$12.20 each. Even though the purchase was made at a significantly lower price than the recent price (US$18.26), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Gates Industrial insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Gates Industrial is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Gates Industrial Insiders Bought Stock Recently

Over the last quarter, Gates Industrial insiders have spent a meaningful amount on shares. Specifically, Independent Director Wilson Neely bought US$201k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Does Gates Industrial Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Gates Industrial insiders own 1.0% of the company, worth about US$48m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Gates Industrial Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Gates Industrial we think they are probably pretty confident of a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Gates Industrial has 1 warning sign we think you should be aware of.