FTAI Aviation Ltd. (NASDAQ:FTAI) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 10%, resulting in a US$1.1b rise in the company's market capitalisation, translating to a gain of 39% on their initial investment. As a result, the stock they originally bought for US$4.84m is now worth US$6.74m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

FTAI Aviation Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman & CEO Joseph Adams for US$4.8m worth of shares, at about US$82.00 per share. Even though the purchase was made at a significantly lower price than the recent price (US$114), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

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!

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

Does FTAI Aviation Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. FTAI Aviation insiders own about US$162m worth of shares (which is 1.4% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The FTAI Aviation Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about FTAI Aviation. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing FTAI Aviation. Every company has risks, and we've spotted 1 warning sign for FTAI Aviation you should know about.

Of course FTAI Aviation 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.