Firebird Metals Limited (ASX:FRB) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 20%, resulting in a AU$5.5m rise in the company's market capitalisation, translating to a gain of 23% on their initial investment. Put another way, the original AU$353.4k acquisition is now worth AU$434.2k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Firebird Metals

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Evan Alexander Cranston bought AU$163k worth of shares at a price of AU$0.15 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.18. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Firebird Metals insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Firebird Metals

Firebird Metals 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 Firebird Metals Boast High Insider Ownership?

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. Insiders own 22% of Firebird Metals shares, worth about AU$7.3m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Firebird Metals Tell Us?

The fact that there have been no Firebird Metals insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Firebird Metals and we see no evidence to suggest they are worried about the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 6 warning signs (4 are potentially serious!) that you ought to be aware of before buying any shares in Firebird Metals.

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.