Yahoo Finance Insider Spends AU$129k Buying More Shares In Strickland Metals
Even if it's not a huge purchase, we think it was good to see that Anthony McClure, the Independent Non-Executive Chairman of Strickland Metals Limited (ASX:STK) recently shelled out AU$129k to buy stock, at AU$0.13 per share. Although the purchase is not a big one, increasing their shareholding by only 7.6%, it can be interpreted as a good sign.
See our latest analysis for Strickland Metals
The Last 12 Months Of Insider Transactions At Strickland Metals
The Chief Executive Officer Andrew Bray made the biggest insider purchase in the last 12 months. That single transaction was for AU$1.1m worth of shares at a price of AU$0.043 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.13. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Strickland Metals 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. By clicking on the graph below, you can see the precise details of each insider transaction!
Strickland Metals is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Strickland Metals insiders own about AU$58m worth of shares. That equates to 27% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Strickland Metals Insiders?
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. When combined with notable insider ownership, these factors suggest Strickland Metals insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Strickland Metals. When we did our research, we found 3 warning signs for Strickland Metals (2 are a bit unpleasant!) that we believe deserve your full attention.
But note: Strickland Metals 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.
