Investors who take an interest in ImpediMed Limited (ASX:IPD) should definitely note that the Independent Non-Executive Director, Fiona Bones, recently paid AU$0.01 per share to buy AU$200k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 911%, potentially signalling some real optimism.

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The Last 12 Months Of Insider Transactions At ImpediMed

In fact, the recent purchase by Fiona Bones was the biggest purchase of ImpediMed shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than AU$0.006 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months ImpediMed insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for ImpediMed

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of ImpediMed

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 our data, it seems that ImpediMed insiders own 7.9% of the company, worth about AU$1.1m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At ImpediMed Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that ImpediMed insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for ImpediMed you should be aware of, and 2 of these are a bit concerning.

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.