Investors who take an interest in Albemarle Corporation (NYSE:ALB) should definitely note that the Executive VP, Kristin Coleman, recently paid US$122 per share to buy US$167k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 100%.

Check out our latest analysis for Albemarle

The Last 12 Months Of Insider Transactions At Albemarle

Over the last year, we can see that the biggest insider purchase was by Chairman & CEO Jerry Masters for US$994k worth of shares, at about US$182 per share. That means that an insider was happy to buy shares at above the current price of US$119. 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. 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.

Over the last year, we can see that insiders have bought 9.48k shares worth US$1.7m. But they sold 2.94k shares for US$946k. Overall, Albemarle insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Albemarle is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

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. Insiders own 0.2% of Albemarle shares, worth about US$34m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Albemarle Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Albemarle we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Albemarle. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Albemarle.

Of course Albemarle 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.

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.