Yahoo Finance With stock up 7.3%, Insiders of Grange Resources Limited (ASX:GRR) must be wishing they had bought more last year
Last week, Grange Resources Limited (ASX:GRR) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 7.3% last week, resulting in a AU$133m increase in the company's market worth. As a result, their original purchase of AU$265k worth of stock is now worth AU$744k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Grange Resources
Grange Resources Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO, MD & Executive Director Honglin Zhao for AU$265k worth of shares, at about AU$0.60 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$1.69. 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.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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.
Insider Ownership of Grange 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. We usually like to see fairly high levels of insider ownership. Grange Resources insiders own 8.4% of the company, currently worth about AU$165m 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 Grange Resources Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Grange Resources insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Grange Resources. You'd be interested to know, that we found 2 warning signs for Grange Resources and we suggest you have a look.
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.
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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.
