Those following along with Stingray Group Inc. (TSE:RAY.A) will no doubt be intrigued by the recent purchase of shares by Mark Pathy, Independent Chairman of the company, who spent a stonking CA$646k on stock at an average price of CA$7.03. While that only increased their holding size by 2.3%, it is still a big swing by our standards.

See our latest analysis for Stingray Group

The Last 12 Months Of Insider Transactions At Stingray Group

In fact, the recent purchase by Independent Chairman Mark Pathy was not their only acquisition of Stingray Group shares this year. They previously made an even bigger purchase of CA$1m worth of shares at a price of CA$5.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$7.26. 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.

In the last twelve months Stingray Group insiders were buying shares, but not selling. 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!

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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Stingray Group insiders own about CA$89m worth of shares. That equates to 17% of the company. 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 Stingray Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Stingray Group shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Stingray Group that deserve your attention before buying any shares.

Of course Stingray Group 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, but not derivative transactions.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.