Insiders who acquired US$590.5k worth of Vivakor, Inc.'s (NASDAQ:VIVK) stock at an average price of US$1.38 in the past 12 months may be dismayed by the recent 15% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$360.0k, which is not great.

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 Vivakor

The Last 12 Months Of Insider Transactions At Vivakor

Over the last year, we can see that the biggest insider purchase was by President James Ballengee for US$223k worth of shares, at about US$1.37 per share. That means that an insider was happy to buy shares at above the current price of US$0.84. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. James Ballengee was the only individual insider to buy during the last year.

James Ballengee purchased 428.25k shares over the year. The average price per share was US$1.38. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Vivakor Boast High 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. We usually like to see fairly high levels of insider ownership. Vivakor insiders own 71% of the company, currently worth about US$20m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Vivakor Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Vivakor insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vivakor. For example, Vivakor has 4 warning signs (and 1 which shouldn't be ignored) we think you should know about.

Of course Vivakor 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.