When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Core Scientific, Inc.'s (NASDAQ:CORZ) instance, it's good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Core Scientific Insider Transactions Over The Last Year

The Independent Director Jordan Levy made the biggest insider purchase in the last 12 months. That single transaction was for US$497k worth of shares at a price of US$10.20 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$9.32). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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 457.32k shares worth US$1.9m. But insiders sold 61.92k shares worth US$573k. In the last twelve months there was more buying than selling by Core Scientific insiders. They paid about US$4.17 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insiders At Core Scientific Have Bought Stock Recently

At Core Scientific,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, two insiders bought US$671k worth of shares in that time. But we did see insider selling worth US$557k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Does Core Scientific 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Core Scientific insiders own 6.3% of the company, currently worth about US$151m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Core Scientific Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Core Scientific insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. Be aware that Core Scientific is showing 2 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...

Of course Core Scientific may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.