Investors who take an interest in Clarus Corporation (NASDAQ:CLAR) should definitely note that the Lead Independent Director, Nicholas Sokolow, recently paid US$4.88 per share to buy US$129k worth of the stock. Although the purchase only increased their holding by 4.4%, it is still a solid purchase in our view.

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The Last 12 Months Of Insider Transactions At Clarus

In fact, the recent purchase by Nicholas Sokolow was the biggest purchase of Clarus shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$4.55 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Nicholas Sokolow was the only individual insider to buy during the last year.

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!

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

Insider Ownership Of Clarus

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 Clarus insiders own 23% of the company, worth about US$40m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Clarus Tell Us?

It's certainly positive 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. Given that insiders also own a fair bit of Clarus we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Clarus has 3 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.