Yahoo Finance Insider Stock Buying Of Salazar Resources Delivers Return On CA$1.28m Investment
Insiders who bought Salazar Resources Limited (CVE:SRL) stock lover the last 12 months are probably not as affected by last week’s 11% loss. Reason being, despite the recent loss, insiders original purchase value of CA$1.28m is now worth CA$2.22m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Salazar Resources
The Last 12 Months Of Insider Transactions At Salazar Resources
In fact, the recent purchase by President Fredy Salazar was not their only acquisition of Salazar Resources shares this year. Earlier in the year, they paid CA$0.045 per share in a CA$900k purchase. We do like to see buying, but this purchase was made at well below the current price of CA$0.08. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months insiders purchased 27.70m shares for CA$1.3m. But insiders sold 20.00m shares worth CA$900k. In the last twelve months there was more buying than selling by Salazar Resources insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Insiders At Salazar Resources Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Salazar Resources. Overall, two insiders shelled out CA$385k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership Of Salazar Resources
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 18% of Salazar Resources shares, worth about CA$3.3m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Salazar Resources Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Salazar Resources shares, given these transactions (along with notable insider ownership of the company). 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 Salazar Resources has 5 warning signs (3 make us uncomfortable!) that deserve your attention before going any further with your analysis.
Of course Salazar Resources 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.
