SecureWorks Corp. (NASDAQ:SCWX) may have lost US$82m in value but insiders who invested last year have seen gains of around US$1.4k to date

SecureWorks Corp. (NASDAQ:SCWX) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 7.2% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of US$210k is now worth US$212k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for SecureWorks

The Last 12 Months Of Insider Transactions At SecureWorks

The Senior VP & CFO Paul Parrish made the biggest insider purchase in the last 12 months. That single transaction was for US$56k worth of shares at a price of US$11.19 each. We do like to see buying, but this purchase was made at well below the current price of US$12.44. 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 SecureWorks insiders were buying shares, but not selling. Their average price was about US$12.36. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. 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!

SecureWorks is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders at SecureWorks Have Bought Stock Recently

Over the last quarter, SecureWorks insiders have spent a meaningful amount on shares. Overall, five insiders shelled out US$175k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Insider Ownership of SecureWorks

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. SecureWorks insiders own about US$34m worth of shares. That equates to 3.3% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The SecureWorks Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of SecureWorks we think they are probably pretty confident of a bright future. While we like knowing 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. Case in point: We've spotted 3 warning signs for SecureWorks you should be aware of, and 1 of these is a bit unpleasant.

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.