Yahoo Finance Bullish Rimfire Pacific Mining Insiders Loaded Up On AU$1.30m Of Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Rimfire Pacific Mining Limited's (ASX:RIM) case, it's fantastic 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 Rimfire Pacific Mining
Rimfire Pacific Mining Insider Transactions Over The Last Year
The insider Trevor Nairn made the biggest insider purchase in the last 12 months. That single transaction was for AU$650k worth of shares at a price of AU$0.006 each. That means that an insider was happy to buy shares at above the current price of AU$0.005. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Notably Trevor Nairn was also the biggest seller.
Happily, we note that in the last year insiders paid AU$1.3m for 201.01m shares. On the other hand they divested 111.93m shares, for AU$679k. Overall, Rimfire Pacific Mining 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 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. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Rimfire Pacific Mining Have Bought Stock Recently
It's good to see that Rimfire Pacific Mining insiders have made notable investments in the company's shares. Specifically, insider Trevor Nairn bought AU$257k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 17% of Rimfire Pacific Mining shares, worth about AU$1.8m. 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 Does This Data Suggest About Rimfire Pacific Mining Insiders?
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. Given that insiders also own a fair bit of Rimfire Pacific Mining we think they are probably pretty confident of a bright future. 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 instance, we've identified 5 warning signs for Rimfire Pacific Mining (4 make us uncomfortable) you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
