Yahoo Finance As Sandfire Resources Limited (ASX:SFR) hits AU$2.6b market cap, insiders may be dismayed about not purchasing higher quantities
Last week, Sandfire Resources Limited (ASX:SFR) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 3.4% last week, resulting in a AU$84m increase in the company's market worth. In other words, the original US$176k purchase is now worth US$210k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Sandfire Resources
The Last 12 Months Of Insider Transactions At Sandfire Resources
The Independent Non-Executive Director Sally Langer made the biggest insider purchase in the last 12 months. That single transaction was for AU$100k worth of shares at a price of AU$5.27 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$5.86. 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.
Sandfire Resources insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Sandfire Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Sandfire Resources
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Sandfire Resources insiders own 1.2% of the company, worth about AU$31m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Sandfire Resources Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Sandfire Resources shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Sandfire Resources and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sandfire Resources. Case in point: We've spotted 2 warning signs for Sandfire Resources you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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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.
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