Insperity, Inc. (NYSE:NSP) shareholders (or potential shareholders) will be happy to see that the Co-Founder, Paul Sarvadi, recently bought a whopping US$7.9m worth of stock, at a price of US$34.05. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 15%.

The Last 12 Months Of Insider Transactions At Insperity

In fact, the recent purchase by Paul Sarvadi was the biggest purchase of Insperity shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$35.38. Of course they may have changed their mind. But this suggests they are optimistic. 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. Happily, the Insperity insiders decided to buy shares at close to current prices. We note that Paul Sarvadi was also the biggest seller.

In the last twelve months insiders purchased 572.57k shares for US$17m. But insiders sold 10.85k shares worth US$564k. Overall, Insperity insiders were net buyers during the last year. Their average price was about US$29.48. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

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. Insperity insiders own about US$78m worth of shares. That equates to 5.8% 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 Insperity Insiders?

It's certainly positive to see the recent insider purchases. 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. When combined with notable insider ownership, these factors suggest Insperity insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Insperity. At Simply Wall St, we've found that Insperity has 2 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

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.