Looking at Red Robin Gourmet Burgers, Inc.'s (NASDAQ:RRGB ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.

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.

The Last 12 Months Of Insider Transactions At Red Robin Gourmet Burgers

The Independent Chairman Anthony Ackil made the biggest insider purchase in the last 12 months. That single transaction was for US$75k worth of shares at a price of US$5.03 each. So it's clear an insider wanted to buy, at around the current price, which is US$5.06. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Red Robin Gourmet Burgers share holders is that an insider was buying at near the current price. Anthony Ackil was the only individual insider to buy during the last year.

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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Red Robin Gourmet Burgers Insiders Are Selling The Stock

Over the last three months, we've seen a bit of insider selling at Red Robin Gourmet Burgers. Insiders only netted US$32k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the selling simply isn't sufficiently substantial to be of much use as a signal.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 5.1% of Red Robin Gourmet Burgers shares, worth about US$4.7m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Do The Red Robin Gourmet Burgers Insider Transactions Indicate?

Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we're not concerned. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Red Robin Gourmet Burgers insiders bought more shares in the company. 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. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Red Robin Gourmet Burgers.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.