Even if it's not a huge purchase, we think it was good to see that Monde Nkosi, the Independent Non-Executive Director of Net 1 UEPS Technologies, Inc. (NASDAQ:UEPS) recently shelled out US$61k to buy stock, at US$4.95 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for Net 1 UEPS Technologies

Net 1 UEPS Technologies Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Group CEO & Director Christopher Meyer for US$587k worth of shares, at about US$5.62 per share. That means that an insider was happy to buy shares at above the current price of US$4.94. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 281.09k shares for US$1.5m. But they sold 17.67k shares for US$98k. Overall, Net 1 UEPS Technologies insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Net 1 UEPS Technologies 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 of Net 1 UEPS Technologies

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Net 1 UEPS Technologies insiders own about US$72m worth of shares. That equates to 26% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Net 1 UEPS Technologies Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Net 1 UEPS Technologies insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Net 1 UEPS Technologies and understanding it should be part of your investment process.