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Kyle Haynes of Surefire Resources NL (ASX:SRN) Just Spent AU$73k On A Handful Of Shares

Simply Wall St
·3-min read

Whilst it may not be a huge deal, we thought it was good to see that Kyle Haynes, who is a company insider, recently bought AU$73k worth of stock, for AU$0.0023 per share. Nevertheless, it only increased shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for Surefire Resources

The Last 12 Months Of Insider Transactions At Surefire Resources

In fact, the recent purchase by Kyle Haynes was the biggest purchase of Surefire Resources shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (AU$0.004), we still think insider buying is a positive. 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.

The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

ASX:SRN Recent Insider Trading May 12th 2020
ASX:SRN Recent Insider Trading May 12th 2020

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 Surefire Resources

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Surefire Resources insiders own about AU$334k worth of shares. That equates to 21% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Surefire Resources Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Surefire Resources we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Surefire Resources. Every company has risks, and we've spotted 6 warning signs for Surefire Resources (of which 2 are a bit concerning!) you should know about.

Of course Surefire 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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.