Yahoo Finance Trade Alert: The Independent Non-Executive Chairman Of Iluka Resources Limited (ASX:ILU), Robert Cole, Has Just Spent AU$131k Buying 68% More Shares
Even if it's not a huge purchase, we think it was good to see that Robert Cole, the Independent Non-Executive Chairman of Iluka Resources Limited (ASX:ILU) recently shelled out AU$131k to buy stock, at AU$8.71 per share. Even though that isn't a massive buy, it did increase their holding by 68%, which is arguably a good sign.
See our latest analysis for Iluka Resources
The Last 12 Months Of Insider Transactions At Iluka Resources
Notably, that recent purchase by Robert Cole is the biggest insider purchase of Iluka Resources shares that we've seen in the last year. That implies that an insider found the current price of AU$8.87 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Iluka Resources insiders decided to buy shares at close to current prices.
While Iluka Resources insiders bought shares during the last year, they didn't sell. 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!
Iluka 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 Iluka Resources
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. 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 0.3% of Iluka Resources shares, worth about AU$12m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Iluka Resources Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Iluka Resources insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Iluka Resources (of which 1 is significant!) you should know about.
Of course Iluka Resources may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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