Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Culp, Inc. (NYSE:CULP), it sends a favourable message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Culp

The Last 12 Months Of Insider Transactions At Culp

The Executive Vice President of Culp Home Fashions Tommy Bruno made the biggest insider purchase in the last 12 months. That single transaction was for US$86k worth of shares at a price of US$5.69 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$4.96). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. 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.

Happily, we note that in the last year insiders paid US$331k for 60.04k shares. But they sold 750.00 shares for US$4.0k. Overall, Culp insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Culp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Culp Insiders Bought Stock Recently

We saw some Culp insider buying shares in the last three months. Insiders bought US$22k worth of shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Insider Ownership Of Culp

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. We usually like to see fairly high levels of insider ownership. Our data indicates that Culp insiders own about US$4.3m worth of shares (which is 7.0% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Culp Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Culp insiders bought more shares in the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for Culp that deserve your attention before buying any shares.