Yahoo Finance Globe Metals & Mining Insiders Added AU$4.3m Of Stock To Their Holdings
Quite a few insiders have dramatically grown their holdings in Globe Metals & Mining Limited (ASX:GBE) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Globe Metals & Mining
Globe Metals & Mining Insider Transactions Over The Last Year
In fact, the recent purchase by Alice Wong was the biggest purchase of Globe Metals & Mining shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is AU$0.037. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Globe Metals & Mining share holders is that insiders were buying at near the current price.
While Globe Metals & Mining insiders bought shares during the last year, they didn't sell. 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).
Globe Metals & Mining Insiders Bought Stock Recently
Over the last quarter, Globe Metals & Mining insiders have spent a meaningful amount on shares. Overall, two insiders shelled out AU$4.3m for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Does Globe Metals & Mining Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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 Globe Metals & Mining insiders own 46% of the company, worth about AU$11m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Globe Metals & Mining Insider Transactions Indicate?
It is good to see recent purchasing. 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Globe Metals & Mining. 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. At Simply Wall St, we've found that Globe Metals & Mining has 6 warning signs (4 don't sit too well with us!) that deserve your attention before going any further with your analysis.
Of course Globe Metals & Mining may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
