Yahoo Finance Magnetic Resources NL (ASX:MAU) insider upped their holding by 5.7% earlier this year
Viewing insider transactions for Magnetic Resources NL's (ASX:MAU ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Magnetic Resources
The Last 12 Months Of Insider Transactions At Magnetic Resources
In the last twelve months, the biggest single purchase by an insider was when MD & Director George Sakalidis bought AU$604k worth of shares at a price of AU$1.42 per share. That means that an insider was happy to buy shares at around the current price of AU$1.47. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Magnetic Resources insider decided to buy shares at close to current prices. George Sakalidis was the only individual insider to buy shares in the last twelve months.
George Sakalidis bought 456.53k shares over the last 12 months at an average price of AU$1.43. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Magnetic Resources 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.
Magnetic Resources Insiders Bought Stock Recently
At Magnetic Resources,over the last quarter, we have observed quite a lot more insider buying than insider selling. We can see that MD & Director George Sakalidis paid AU$604k for shares in the company. But insiders only sold shares worth AU$496k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership of Magnetic 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. We usually like to see fairly high levels of insider ownership. It's great to see that Magnetic Resources insiders own 48% of the company, worth about AU$158m. 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 Magnetic Resources Tell Us?
It is good to see the recent insider purchase. 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Magnetic Resources. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Magnetic Resources has 3 warning signs (and 2 which can't be ignored) we think you should know about.
Of course Magnetic 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
