It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Molten Ventures Plc's (LON:GROW) case, it's fantastic 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Molten Ventures

Molten Ventures Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Interim Chair & Senior Director Grahame Cook bought UK£50k worth of shares at a price of UK£2.35 per share. That implies that an insider found the current price of UK£2.53 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Molten Ventures share holders is that insiders were buying at near the current price.

Molten Ventures insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below! insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this freelist of growing companies that insiders are buying.

Does Molten Ventures 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Molten Ventures insiders have about 0.8% of the stock, worth approximately UK£3.1m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.



What Might The Insider Transactions At Molten Ventures Tell Us?

It doesn't really mean much that no insider has traded Molten Ventures shares in the last quarter. 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 Molten Ventures insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Molten Ventures. Case in point: We've spotted 2 warning signs for Molten Ventures you should be aware of, and 1 of them doesn't sit too well with us.

But note: Molten Ventures may not be the best stock to buy. So take a peek at this freelist of interesting companies with high ROE 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.