Insiders who bought Indiana Resources Limited (ASX:IDA) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$3.8m as a result of the stock's 14% gain over the same period. In other words, the original AU$562k purchase is now worth AU$595k.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Indiana Resources Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Peter Koller for AU$472k worth of shares, at about AU$0.062 per share. That implies that an insider found the current price of AU$0.063 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Indiana Resources share holders is that insiders were buying at near the current price.
Indiana 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Insiders At Indiana Resources Have Bought Stock Recently
Over the last quarter, Indiana Resources insiders have spent a meaningful amount on shares. Overall, two insiders shelled out AU$90k for shares in the company -- and none sold. This makes one think the business has some good points.
Insider Ownership Of Indiana Resources
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Indiana Resources insiders own about AU$11m worth of shares. That equates to 35% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Indiana Resources Insider Transactions Indicate?
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. Given that insiders also own a fair bit of Indiana Resources we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Indiana Resources (2 make us uncomfortable!) that we believe deserve your full attention.
But note: Indiana 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, 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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