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 Cardlytics, Inc. (NASDAQ:CDLX), that sends out a positive message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Cardlytics

The Last 12 Months Of Insider Transactions At Cardlytics

The Independent Director Scott Hill made the biggest insider purchase in the last 12 months. That single transaction was for US$143k worth of shares at a price of US$3.58 each. So it's clear an insider wanted to buy, at around the current price, which is US$3.88. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Cardlytics share holders is that insiders were buying at near the current price.

While Cardlytics insiders bought shares during the last year, they didn't sell. 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!

Cardlytics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Cardlytics Insiders Bought Stock Recently

It's good to see that Cardlytics insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$228k worth of shares. That shows some optimism about the company's future.

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. From looking at our data, insiders own US$4.2m worth of Cardlytics stock, about 2.2% of the company. We consider this fairly low insider ownership.

What Might The Insider Transactions At Cardlytics Tell Us?

It's certainly positive to see the recent insider purchases. 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 Cardlytics insiders are expecting a bright future. While it's good to be aware of 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. For example, Cardlytics has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.

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 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.