Potential Windar Photonics PLC (LON:WPHO) shareholders may wish to note that the Independent Non Executive Director, Paul Hodges, recently bought UK£93k worth of stock, paying UK£0.42 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 6.8%.

View our latest analysis for Windar Photonics

Windar Photonics Insider Transactions Over The Last Year

Notably, that recent purchase by Independent Non Executive Director Paul Hodges was not the only time they bought Windar Photonics shares this year. They previously made an even bigger purchase of UK£305k worth of shares at a price of UK£0.31 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£0.47), 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.

Paul Hodges bought 2.06m shares over the last 12 months at an average price of UK£0.34. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Windar Photonics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Windar Photonics Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 15% of Windar Photonics shares, worth about UK£5.5m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Windar Photonics Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Windar Photonics insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 4 warning signs with Windar Photonics and understanding them should be part of your investment process.

But note: Windar Photonics 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 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.