KVH Industries, Inc. (NASDAQ:KVHI) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 17% resulting in a US$29m addition to the company’s market value. As a result, their original purchase of US$419.1k worth of stock is now worth US$734.3k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

KVH Industries Insider Transactions Over The Last Year

The insider Bradley Radoff made the biggest insider purchase in the last 12 months. That single transaction was for US$231k worth of shares at a price of US$5.78 each. We do like to see buying, but this purchase was made at well below the current price of US$10.49. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Bradley Radoff purchased 70.00k shares over the year. The average price per share was US$5.99. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Insiders At KVH Industries Have Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at KVH Industries. We can see that insider Bradley Radoff paid US$188k for shares in the company. But we did see insider selling worth US$58k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Does KVH Industries Boast High 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. KVH Industries insiders own about US$30m worth of shares. That equates to 16% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About KVH Industries Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of KVH Industries we think they are probably pretty confident of a bright future. Of course, the future is what matters most.

But note: KVH Industries may not be the best stock to buy. So take a peek at this free list 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.

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.