It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Solid State plc's (LON:SOLI) case, it's fantastic news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Solid State

The Last 12 Months Of Insider Transactions At Solid State

The CFO, Group Finance Director & Executive Director Peter James made the biggest insider purchase in the last 12 months. That single transaction was for UK￡40k worth of shares at a price of UK￡13.31 each. So it's clear an insider wanted to buy, at around the current price, which is UK￡13.60. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Solid State insiders decided to buy shares at close to current prices. We note that Peter James was both the biggest buyer and the biggest seller.

In the last twelve months insiders purchased 7.55k shares for UK￡100k. But they sold 7.54k shares for UK￡100k. In total, Solid State insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Solid State

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 16% of Solid State shares, worth about UK￡24m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Solid State Tell Us?

It doesn't really mean much that no insider has traded Solid State shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Solid State and we see no evidence to suggest they are worried about the 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. Every company has risks, and we've spotted 1 warning sign for Solid State you should know about.