Bullish Steadfast Group Limited (ASX:SDF) insiders were rewarded last week as their AU$2.7m investment inflated to AU$3.1m

Last week, Steadfast Group Limited (ASX:SDF) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 4.6% last week, resulting in a AU$262m increase in the company's market worth. Put another way, the original AU$2.7m acquisition is now worth AU$3.1m.

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

View our latest analysis for Steadfast Group

The Last 12 Months Of Insider Transactions At Steadfast Group

Over the last year, we can see that the biggest insider purchase was by Co-Founder Robert Kelly for AU$2.4m worth of shares, at about AU$5.03 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$5.74), we still think insider buying is a positive. 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.

Happily, we note that in the last year insiders paid AU$2.7m for 547.50k shares. On the other hand they divested 391.09k shares, for AU$1.9m. Overall, Steadfast Group insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Steadfast Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Steadfast Group insiders own 5.7% of the company, worth about AU$338m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Steadfast Group Insiders?

It doesn't really mean much that no insider has traded Steadfast Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Steadfast Group insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Steadfast Group. While conducting our analysis, we found that Steadfast Group has 1 warning sign and it would be unwise to ignore this.

But note: Steadfast Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.