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

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Oliver's Real Food

The Last 12 Months Of Insider Transactions At Oliver's Real Food

Over the last year, we can see that the biggest insider sale was by the insider, Jason Gunn, for AU$126k worth of shares, at about AU$0.022 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (AU$0.009). So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Jason Gunn.

In the last twelve months insiders purchased 10.60m shares for AU$160k. But they sold 7.60m shares for AU$126k. In total, Oliver's Real Food insiders bought more than they sold over the last year. The average buy price was around AU$0.015. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Oliver's Real Food 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.

Does Oliver's Real Food 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Oliver's Real Food insiders own 53% of the company, worth about AU$2.6m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Oliver's Real Food Tell Us?

The fact that there have been no Oliver's Real Food insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Oliver's Real Food insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 5 warning signs we've spotted with Oliver's Real Food (including 3 which shouldn't be ignored).

Of course Oliver's Real Food may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.