Yahoo Finance Executive Director Grant Burnaford Davey Just Bought 204% More Shares In Cradle Resources Limited (ASX:CXX)
Investors who take an interest in Cradle Resources Limited (ASX:CXX) should definitely note that the Executive Director, Grant Burnaford Davey, recently paid AU$0.076 per share to buy AU$166k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 204%.
View our latest analysis for Cradle Resources
Cradle Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Grant Burnaford Davey is the biggest insider purchase of Cradle Resources shares that we've seen in the last year. That implies that an insider found the current price of AU$0.08 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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 Cradle Resources share holders is that an insider was buying at near the current price. Grant Burnaford Davey was the only individual insider to buy during the last year.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Cradle Resources
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. It's great to see that Cradle Resources insiders own 42% of the company, worth about AU$5.2m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Cradle Resources Insiders?
It's certainly positive 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Cradle Resources. Looks promising! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 2 warning signs we've spotted with Cradle Resources (including 1 which is concerning).
But note: Cradle 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.
This article by Simply Wall St is general in nature. 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.
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