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 Everbridge, Inc. (NASDAQ:EVBG), that sends out a positive message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Everbridge

The Last 12 Months Of Insider Transactions At Everbridge

The Independent Chairman of the Board of Directors & Lead Director David Henshall made the biggest insider purchase in the last 12 months. That single transaction was for US$465k worth of shares at a price of US$23.24 each. That means that an insider was happy to buy shares at above the current price of US$22.75. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 34.00k shares for US$776k. On the other hand they divested 32.00 shares, for US$605. Overall, Everbridge insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Have Everbridge Insiders Traded Recently?

In the last three months company Chief Accounting Officer & Corporate Controller Phillip Huff divested US$605 worth of stock. That is not a lot. Looking at the net result, we don't think this recent trading sheds much light on how insiders, as a group, are feeling about the company's prospects.

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. From our data, it seems that Everbridge insiders own 0.7% of the company, worth about US$7.0m. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Everbridge Tell Us?

While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we're not concerned. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Everbridge insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Everbridge.

Of course Everbridge 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.