Whilst it may not be a huge deal, we thought it was good to see that the Fastenal Company (NASDAQ:FAST) Independent Director, Michael Ancius, recently bought US$51k worth of stock, for US$51.00 per share. Although the purchase is not a big one, increasing their shareholding by only 3.8%, it can be interpreted as a good sign.

See our latest analysis for Fastenal

The Last 12 Months Of Insider Transactions At Fastenal

In the last twelve months, the biggest single purchase by an insider was when Independent Director Sarah Nielsen bought US$56k worth of shares at a price of US$55.76 per share. That means that an insider was happy to buy shares at above the current price of US$52.69. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Over the last year, we can see that insiders have bought 6.28k shares worth US$342k. But insiders sold 458.00 shares worth US$27k. In total, Fastenal insiders bought more than they sold over the last year. 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!

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

Does Fastenal Boast High 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. Fastenal insiders own 0.3% of the company, currently worth about US$104m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Fastenal Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Fastenal. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Fastenal that deserve your attention before buying any shares.

But note: Fastenal 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.