Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Integral Diagnostics Limited (ASX:IDX), that sends out a positive message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Integral Diagnostics

Integral Diagnostics Insider Transactions Over The Last Year

The Independent Non-Executive Director James Hall made the biggest insider purchase in the last 12 months. That single transaction was for AU$258k worth of shares at a price of AU$1.72 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$2.45. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Integral Diagnostics insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Integral Diagnostics is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.7% of Integral Diagnostics shares, worth about AU$9.7m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Integral Diagnostics Insiders?

The fact that there have been no Integral Diagnostics insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Integral Diagnostics insiders are doubting the company. While we like knowing 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. In terms of investment risks, we've identified 1 warning sign with Integral Diagnostics and understanding this should be part of your investment process.