Quite a few insiders have dramatically grown their holdings in First Property Group plc (LON:FPO) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for First Property Group

The Last 12 Months Of Insider Transactions At First Property Group

The Group CEO & Director Benyamin Habib made the biggest insider purchase in the last 12 months. That single transaction was for UK£643k worth of shares at a price of UK£0.08 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.14. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months First Property Group insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

First Property Group Insiders Bought Stock Recently

Over the last quarter, First Property Group insiders have spent a meaningful amount on shares. Overall, six insiders shelled out UK£1.3m for shares in the company -- and none sold. That shows some optimism about the company's future.

Insider Ownership Of First Property Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that First Property Group insiders own 34% of the company, worth about UK£7.0m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About First Property Group Insiders?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest First Property Group insiders are well aligned, and that they may think the share price is too low. 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. To help with this, we've discovered 4 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in First Property Group.