Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH), it sends a favourable message to the company's shareholders.

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 Sportsman's Warehouse Holdings

In the last twelve months, the biggest single purchase by an insider was when Independent Chair Richard McBee bought US$201k worth of shares at a price of US$2.68 per share. So it's clear an insider wanted to buy, at around the current price, which is US$2.77. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Sportsman's Warehouse Holdings share holders is that insiders were buying at near the current price.

Sportsman's Warehouse Holdings insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Sportsman's Warehouse Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$3.0m worth of Sportsman's Warehouse Holdings stock, about 2.7% of the company. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Sportsman's Warehouse Holdings Insiders?

It doesn't really mean much that no insider has traded Sportsman's Warehouse Holdings 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 Sportsman's Warehouse Holdings insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sportsman's Warehouse Holdings.

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.