It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Custom Truck One Source, Inc.'s (NYSE:CTOS) case, it's fantastic 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.

Custom Truck One Source Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when President of Sales Joseph Ross bought US$335k worth of shares at a price of US$3.98 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$4.50. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Custom Truck One Source 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!

Custom Truck One Source 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 Custom Truck One Source 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. Custom Truck One Source insiders own about US$45m worth of shares. That equates to 4.2% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Custom Truck One Source Insiders?

It doesn't really mean much that no insider has traded Custom Truck One Source shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Custom Truck One Source insiders are doubting the company, and they do own shares. Of course, the future is what matters most. So if you are interested in Custom Truck One Source, you should check out this free report on analyst forecasts for the company.

But note: Custom Truck One Source may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.