Yahoo Finance Favourable Signals For Lincoln Minerals: Numerous Insiders Acquired Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Lincoln Minerals Limited's (ASX:LML) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Lincoln Minerals
The Last 12 Months Of Insider Transactions At Lincoln Minerals
Over the last year, we can see that the biggest insider purchase was by insider Tenghui Zhang for AU$456k worth of shares, at about AU$0.006 per share. That means that an insider was happy to buy shares at above the current price of AU$0.006. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Lincoln Minerals insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Lincoln Minerals is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Lincoln Minerals Insiders Bought Stock Recently
Over the last quarter, Lincoln Minerals insiders have spent a meaningful amount on shares. insider Tenghui Zhang spent AU$456k on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.
Does Lincoln Minerals Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Lincoln Minerals insiders own about AU$5.9m worth of shares (which is 48% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Lincoln Minerals Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Lincoln Minerals. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lincoln Minerals. Case in point: We've spotted 5 warning signs for Lincoln Minerals you should be aware of, and 4 of these are a bit unpleasant.
But note: Lincoln Minerals 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 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.
