Yahoo Finance MD & Director of Calidus Resources David Reeves Buys 3.9% More Shares
Even if it's not a huge purchase, we think it was good to see that David Reeves, the MD & Director of Calidus Resources Limited (ASX:CAI) recently shelled out AU$100k to buy stock, at AU$0.11 per share. Although the purchase is not a big one, increasing their shareholding by only 3.9%, it can be interpreted as a good sign.
View our latest analysis for Calidus Resources
Calidus Resources Insider Transactions Over The Last Year
Notably, that recent purchase by David Reeves is the biggest insider purchase of Calidus Resources shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (AU$0.14), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Calidus Resources insiders may have bought shares in the last year, but they didn't sell any. 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!
Calidus Resources is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 6.2% of Calidus Resources shares, worth about AU$7.1m, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Calidus Resources Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Calidus Resources insiders are expecting a bright future. 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. Case in point: We've spotted 3 warning signs for Calidus Resources you should be aware of.
But note: Calidus Resources 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.
