Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of North American Construction Group Ltd. (TSE:NOA), that sends out a positive message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for North American Construction Group

North American Construction Group Insider Transactions Over The Last Year

The Chairman of the Board, Martin Ferron, made the biggest insider sale in the last 12 months. That single transaction was for CA$621k worth of shares at a price of CA$31.03 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (CA$25.34). So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Martin Ferron. Notably Martin Ferron was also the biggest buyer, having purchased CA$1.3m worth of shares.

Happily, we note that in the last year insiders paid CA$1.3m for 52.00k shares. But they sold 44.00k shares for CA$1.3m. In the last twelve months there was more buying than selling by North American Construction Group insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

North American Construction Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

North American Construction Group Insiders Bought Stock Recently

Over the last quarter, North American Construction Group insiders have spent a meaningful amount on shares. Overall, two insiders shelled out CA$602k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that North American Construction Group insiders own 12% of the company, worth about CA$79m. 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 Does This Data Suggest About North American Construction Group Insiders?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of North American Construction Group we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing North American Construction Group. To that end, you should learn about the 3 warning signs we've spotted with North American Construction Group (including 1 which is concerning).

Of course North American Construction 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 of direct interests only, but not derivative transactions or indirect interests.

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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.