It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Silvaco Group, Inc.'s (NASDAQ:SVCO) case, it's fantastic news for shareholders.

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.

Silvaco Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chairman of the Board, Katherine Ngai-Pesic, for US$127k worth of shares, at about US$5.06 per share. That means that an insider was selling shares at around the current price of US$4.70. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last twelve months insiders purchased 146.17k shares for US$633k. On the other hand they divested 54.23k shares, for US$265k. In total, Silvaco Group insiders bought more than they sold over the last year. Their average price was about US$4.33. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Silvaco Group 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.

Silvaco Group Insiders Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Silvaco Group. In fact, four insiders bought US$422k worth of shares. But we did see Senior VP Candace Jackson sell shares worth US$35k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership Of Silvaco Group

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Silvaco Group insiders own 70% of the company, currently worth about US$93m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Silvaco Group Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Silvaco Group. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Silvaco Group has 2 warning signs and it would be unwise to ignore them.

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.