- Oops!Something went wrong.Please try again later.
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Great Southern Mining Limited (ASX:GSN), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Great Southern Mining
The insider Adam Macdougall made the biggest insider purchase in the last 12 months. That single transaction was for AU$308k worth of shares at a price of AU$0.05 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.068), 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.
In the last twelve months Great Southern Mining insiders were buying shares, but not selling. 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!
Great Southern Mining is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Great Southern Mining Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Great Southern Mining. We can see that insider Adam Macdougall paid AU$308k for shares in the company. No-one sold. That shows some optimism about the company's future.
Does Great Southern Mining Boast High 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. We usually like to see fairly high levels of insider ownership. Great Southern Mining insiders own 59% of the company, currently worth about AU$20m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Great Southern Mining Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Great Southern Mining. That's what I like to see! 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. To help with this, we've discovered 6 warning signs (3 are significant!) that you ought to be aware of before buying any shares in Great Southern Mining.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.