Viewing insider transactions for Fenix Resources Limited's (ASX:FEX ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.

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.

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In the last twelve months, the biggest single purchase by an insider was when Executive Chairman John Welborn bought AU$223k worth of shares at a price of AU$0.34 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.48. 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.

John Welborn bought a total of 1.50m shares over the year at an average price of AU$0.33. 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!

View our latest analysis for Fenix Resources

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

For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 17% of Fenix Resources shares, worth about AU$63m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Fenix Resources insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fenix Resources. For example - Fenix Resources has 1 warning sign we think you should be aware of.