Insiders who bought American Vanguard Corporation (NYSE:AVD) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$13m as a result of the stock's 17% gain over the same period. As a result, their original purchase of US$197.4k worth of stock is now worth US$221.2k.

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.

The Last 12 Months Of Insider Transactions At American Vanguard

The Independent Director Patrick Gottschalk made the biggest insider purchase in the last 12 months. That single transaction was for US$185k worth of shares at a price of US$2.95 each. So it's clear an insider wanted to buy, at around the current price, which is US$3.16. 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. Happily, the American Vanguard insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 70.00k shares worth US$197k. But insiders sold 6.00k shares worth US$32k. Overall, American Vanguard 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

American Vanguard Insiders Bought Stock Recently

It's good to see that American Vanguard insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$197k worth of shares. This could be interpreted as suggesting a positive outlook.

Does American Vanguard 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests American Vanguard insiders own 3.4% of the company, worth about US$2.8m. We consider this fairly low insider ownership.

So What Does This Data Suggest About American Vanguard Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that American Vanguard insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing.

Of course American Vanguard 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.