Those following along with Gogo Inc. (NASDAQ:GOGO) will no doubt be intrigued by the recent purchase of shares by Charles Townsend, Independent Director of the company, who spent a stonking US$2.4m on stock at an average price of US$8.32. While that only increased their holding size by 8.2%, it is still a big swing by our standards.

View our latest analysis for Gogo

Gogo Insider Transactions Over The Last Year

Notably, that recent purchase by Charles Townsend is the biggest insider purchase of Gogo shares that we've seen in the last year. That implies that an insider found the current price of US$8.90 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Gogo share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 301.65k shares for US$2.5m. But insiders sold 79.80k shares worth US$821k. Overall, Gogo insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Gogo 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 Of Gogo

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Gogo insiders own 6.4% of the company, worth about US$71m. 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 Do The Gogo Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Gogo 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 Gogo. Every company has risks, and we've spotted 3 warning signs for Gogo you should know about.

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.