Investors who take an interest in Betterware de México, S.A.P.I. de C.V. (NYSE:BWMX) should definitely note that the Group CEO, Andres Chevallier, recently paid US$16.81 per share to buy US$168k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 4.5%.

The Last 12 Months Of Insider Transactions At Betterware de MéxicoP.I. de

In fact, the recent purchase by Andres Chevallier was the biggest purchase of Betterware de MéxicoP.I. de shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$17.23 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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. Happily, the Betterware de MéxicoP.I. de insiders decided to buy shares at close to current prices.

While Betterware de MéxicoP.I. de insiders bought shares during the last year, they didn't sell. 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 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

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Betterware de MéxicoP.I. de insiders own 59% of the company, worth about US$367m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Betterware de MéxicoP.I. de Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Betterware de MéxicoP.I. de insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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.I. de that deserve your attention before buying any shares.

Of course Betterware de MéxicoP.I. de 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.