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 Clean Air Metals Inc. (CVE:AIR), it sends a favourable message to the company's 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.

See our latest analysis for Clean Air Metals

The Last 12 Months Of Insider Transactions At Clean Air Metals

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman of Board James Gallagher bought CA$108k worth of shares at a price of CA$0.27 per share. That means that an insider was happy to buy shares at above the current price of CA$0.20. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Clean Air Metals insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$0.24. These transactions suggest that insiders have considered the current price attractive. 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 growing companies that insiders are buying.

Insider Ownership of Clean Air Metals

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Clean Air Metals insiders own 2.9% of the company, worth about CA$1.3m. We consider this fairly low insider ownership.

So What Do The Clean Air Metals Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Clean Air Metals stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Clean Air Metals. To that end, you should learn about the 6 warning signs we've spotted with Clean Air Metals (including 2 which are significant).

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, but not derivative transactions.

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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.