The recent price decline of 11% in GEN Restaurant Group, Inc.'s (NASDAQ:GENK) stock may have disappointed insiders who bought US$107.0k worth of shares at an average price of US$3.34 in the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$68.8k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

GEN Restaurant Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Michael Cowan bought US$99k worth of shares at a price of US$3.30 per share. That means that an insider was happy to buy shares at above the current price of US$2.15. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While GEN Restaurant Group insiders bought shares during the last year, they didn't sell. 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).

Does GEN Restaurant Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, GEN Restaurant Group insiders have about 1.2% of the stock, worth approximately US$911k. I generally like to see higher levels of ownership.

So What Does This Data Suggest About GEN Restaurant Group Insiders?

It doesn't really mean much that no insider has traded GEN Restaurant Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think GEN Restaurant Group insiders are doubting the company. 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. For example - GEN Restaurant Group has 1 warning sign we think you should be aware of.

But note: GEN Restaurant Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.