Multiple insiders secured a larger position in Innovative Solutions and Support, Inc. (NASDAQ:ISSC) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Innovative Solutions and Support

The Last 12 Months Of Insider Transactions At Innovative Solutions and Support

The insider, Norman Pessin, made the biggest insider sale in the last 12 months. That single transaction was for US$4.3m worth of shares at a price of US$9.02 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$7.75. So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 621.90k shares for US$5.2m. But they sold 571.46k shares for US$5.1m. In the last twelve months there was more buying than selling by Innovative Solutions and Support insiders. 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!

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

Insiders At Innovative Solutions and Support Have Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Innovative Solutions and Support. In total, insider Christopher Harborne bought US$1.8m worth of shares in that time. But we did see insider Christopher Harborne sell shares worth US$646. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Does Innovative Solutions and Support 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Innovative Solutions and Support insiders own 22% of the company, worth about US$29m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Innovative Solutions and Support Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Innovative Solutions and Support we think they are probably pretty confident of a bright future. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

But note: Innovative Solutions and Support 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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