Jewett-Cameron Trading Company Ltd. (NASDAQ:JCTC) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 18% resulting in a US$1.7m addition to the company’s market value. As a result, the stock they originally bought for US$281.4k is now worth US$404.5k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

The Last 12 Months Of Insider Transactions At Jewett-Cameron Trading

In the last twelve months, the biggest single purchase by an insider was when insider Mindy Bradley bought US$91k worth of shares at a price of US$2.20 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$3.14. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Jewett-Cameron Trading insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At Jewett-Cameron Trading Have Bought Stock Recently

Over the last quarter, Jewett-Cameron Trading insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$281k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

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. From looking at our data, insiders own US$389k worth of Jewett-Cameron Trading stock, about 3.9% of the company. We consider this fairly low insider ownership.

So What Does This Data Suggest About Jewett-Cameron Trading Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Jewett-Cameron Trading insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jewett-Cameron Trading. In terms of investment risks, we've identified 2 warning signs with Jewett-Cameron Trading and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.