Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Entravision Communications Corporation (NYSE:EVC), that sends out a positive message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Entravision Communications

The Last 12 Months Of Insider Transactions At Entravision Communications

Over the last year, we can see that the biggest insider purchase was by CEO & Director Michael Christenson for US$385k worth of shares, at about US$3.85 per share. That means that even when the share price was higher than US$2.02 (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. To us, it's very important to consider the price insiders pay for 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.

Entravision Communications insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$2.73. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Does Entravision Communications Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Entravision Communications insiders own 18% of the company, worth about US$33m. 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 Entravision Communications Tell Us?

The fact that there have been no Entravision Communications insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Entravision Communications and we see no evidence to suggest they are worried about the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Entravision Communications (of which 1 is concerning!) you should know about.