Whilst it may not be a huge deal, we thought it was good to see that the NeoVolta Inc. (NASDAQ:NEOV) Executive VP & Director, Steve Bond, recently bought US$98k worth of stock, for US$2.09 per share. However, it only increased their shares held by 6.3%, and it wasn't a huge purchase by absolute value, either.

The Last 12 Months Of Insider Transactions At NeoVolta

Notably, that recent purchase by Steve Bond is the biggest insider purchase of NeoVolta shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of US$2.58. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Does NeoVolta Boast High 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. It appears that NeoVolta insiders own 16% of the company, worth about US$19m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The NeoVolta Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest NeoVolta insiders are well aligned, and that they may think the share price is too low. 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 NeoVolta is showing 3 warning signs in our investment analysis, and 2 of those can't be ignored...

Of course NeoVolta may not be the best stock to buy. So you may wish to see this free collection of high quality 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.