Yahoo Finance Have Insiders Been Buying Tigers Realm Coal Limited (ASX:TIG) Shares?
We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Tigers Realm Coal Limited (ASX:TIG), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
Check out our latest analysis for Tigers Realm Coal
The Last 12 Months Of Insider Transactions At Tigers Realm Coal
The Non-Executive Director Bruce Gray made the biggest insider purchase in the last 12 months. That single transaction was for AU$21m worth of shares at a price of AU$0.008 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.009. 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.
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!
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.
Insider Ownership of Tigers Realm Coal
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Tigers Realm Coal insiders own about AU$72m worth of shares (which is 61% 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.
What Might The Insider Transactions At Tigers Realm Coal Tell Us?
The fact that there have been no Tigers Realm Coal insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Tigers Realm Coal insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tigers Realm Coal. For example, Tigers Realm Coal has 3 warning signs (and 2 which are significant) we think you should know about.
Of course Tigers Realm Coal 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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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.
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