When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Dotz Nano Limited's (ASX:DTZ) instance, it's good news for 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.

View our latest analysis for Dotz Nano

The Last 12 Months Of Insider Transactions At Dotz Nano

Notably, that recent purchase by Natanel Harpaz is the biggest insider purchase of Dotz Nano shares that we've seen in the last year. That means that even when the share price was higher than AU$0.085 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Dotz Nano insiders were buying shares, but not selling. Their average price was about AU$0.12. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insiders At Dotz Nano Have Bought Stock Recently

Over the last quarter, Dotz Nano insiders have spent a meaningful amount on shares. insider Natanel Harpaz spent AU$100k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Dotz Nano insiders own 13% of the company, worth about AU$5.8m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Dotz Nano Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Dotz Nano insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dotz Nano. At Simply Wall St, we've found that Dotz Nano has 5 warning signs (2 are significant!) that deserve your attention before going any further with your analysis.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.