When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in SPAR Group, Inc.'s (NASDAQ:SGRP) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

SPAR Group Insider Transactions Over The Last Year

The President William Linnane made the biggest insider purchase in the last 12 months. That single transaction was for US$176k worth of shares at a price of US$1.02 each. That means that an insider was happy to buy shares at above the current price of US$0.84. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. 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.

Happily, we note that in the last year insiders paid US$269k for 306.00k shares. But they sold 10.00k shares for US$11k. In the last twelve months there was more buying than selling by SPAR Group insiders. The average buy price was around US$0.88. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

SPAR Group Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at SPAR Group. CFO, Treasurer & Secretary Steven Hennen shelled out US$50k for shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership Of SPAR Group

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that SPAR Group insiders own 34% of the company, worth about US$6.5m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At SPAR Group Tell Us?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think SPAR Group insiders are doubting the company, and they do own shares. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision.

But note: SPAR Group 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.