The Executive Chairman of S2 Resources Ltd (ASX:S2R), Mark Bennett, Just Bought 10% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the S2 Resources Ltd (ASX:S2R) Executive Chairman, Mark Bennett, recently bought AU$79k worth of stock, for AU$0.15 per share. That purchase might not be huge but it did increase their holding by 10%.
See our latest analysis for S2 Resources
S2 Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Mark Bennett is the biggest insider purchase of S2 Resources shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$0.17. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for S2 Resources share holders is that insiders were buying at near the current price.
While S2 Resources insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
S2 Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of S2 Resources
For a common shareholder, it is worth checking how many shares are held by company 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. From looking at our data, insiders own AU$2.4m worth of S2 Resources stock, about 4.0% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.
So What Do The S2 Resources Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on S2 Resources stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that S2 Resources is showing 4 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...
But note: S2 Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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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.