Insiders who bought US$3.57m worth of Wrap Technologies, Inc.'s (NASDAQ:WRAP) stock at an average buy price of US$1.85 over the last year may be disappointed by the recent 27% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$3.20m, which is not what they expected.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

The Last 12 Months Of Insider Transactions At Wrap Technologies

Over the last year, we can see that the biggest insider sale was by the insider, Elwood Norris, for US$2.0m worth of shares, at about US$2.91 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$1.66. So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid US$3.6m for 1.93m shares. But they sold 1.19m shares for US$2.7m. Overall, Wrap Technologies 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Wrap Technologies Insiders Are Selling The Stock

Over the last three months, we've seen notably more insider selling, than insider buying, at Wrap Technologies. We note insider Elwood Norris cashed in US$2.4m worth of shares. Meanwhile insiders bought US$1.0m worth. The share price has moved a bit recently, but it's hard to argue that the selling is a positive.

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. Wrap Technologies insiders own about US$29m worth of shares. That equates to 31% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Wrap Technologies Tell Us?

Unfortunately, there has been more insider selling of Wrap Technologies stock, than buying, in the last three months. But we take heart from prior transactions. It's good to see insiders are shareholders. So we're not overly bothered by recent selling. 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. Be aware that Wrap Technologies is showing 4 warning signs in our investment analysis, and 1 of those is concerning...

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.