Investors who take an interest in GQG Partners Inc. (ASX:GQG) should definitely note that the Founder, Rajiv Jain, recently paid AU$3.62 per share to buy AU$797k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 74%.

Check out our latest analysis for GQG Partners

Notably, that recent purchase by Rajiv Jain is the biggest insider purchase of GQG Partners shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$2.17. 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Rajiv Jain was the only individual insider to buy during the last year.

Rajiv Jain bought 517.29k shares over the last 12 months at an average price of AU$3.04. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. It's great to see that GQG Partners insiders own 74% of the company, worth about AU$4.7b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest GQG Partners insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - GQG Partners has 1 warning sign we think you should be aware of.