When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Catalyst Bancorp, Inc.'s (NASDAQ:CLST) instance, it's good news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Catalyst Bancorp

The Last 12 Months Of Insider Transactions At Catalyst Bancorp

In the last twelve months, the biggest single purchase by an insider was when Independent Director & Secretary Ted Bellard bought US$82k worth of shares at a price of US$10.01 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$11.91. 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.

Catalyst Bancorp insiders may have bought shares in the last year, but they didn't sell any. 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!

Catalyst Bancorp is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. Insiders own 6.5% of Catalyst Bancorp shares, worth about US$3.7m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Catalyst Bancorp Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Catalyst Bancorp insiders are doubting the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for Catalyst Bancorp you should know about.