Yahoo Finance Godolphin Resources Slides As Insider Purchases Lose Another AU$80k
Insiders who bought AU$163.1k worth of Godolphin Resources Limited's (ASX:GRL) stock at an average buy price of AU$0.039 over the last year may be disappointed by the recent 23% decrease in the stock. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only AU$82.9k.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Godolphin Resources
The Last 12 Months Of Insider Transactions At Godolphin Resources
The insider Ian Buchhorn made the biggest insider purchase in the last 12 months. That single transaction was for AU$84k worth of shares at a price of AU$0.042 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.02). 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. To us, it's very important to consider the price insiders pay for 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.
Godolphin Resources insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Godolphin Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Godolphin Resources 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. Our data indicates that Godolphin Resources insiders own about AU$565k worth of shares (which is 13% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Godolphin Resources Tell Us?
The fact that there have been no Godolphin Resources insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Godolphin Resources insiders are doubting the company. 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 example, Godolphin Resources has 5 warning signs (and 4 which shouldn't be ignored) we think you should know about.
But note: Godolphin 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 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.
