Yahoo Finance Trade Alert: The Independent Non-Executive Director Of Todd River Resources Limited (ASX:TRT), Geoffrey Crow, Has Just Spent AU$75k Buying 38% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Todd River Resources Limited (ASX:TRT) Independent Non-Executive Director, Geoffrey Crow, recently bought AU$75k worth of stock, for AU$0.05 per share. That purchase might not be huge but it did increase their holding by 38%.
Check out our latest analysis for Todd River Resources
Todd River Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Non-Executive Director Geoffrey Crow was not the only time they bought Todd River Resources shares this year. They previously made an even bigger purchase of AU$306k worth of shares at a price of AU$0.25 per share. That means that an insider was happy to buy shares at above the current price of AU$0.052. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Geoffrey Crow.
Geoffrey Crow bought a total of 5.18m shares over the year at an average price of AU$0.073. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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 Todd River 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. Our data indicates that Todd River Resources insiders own about AU$1.6m worth of shares (which is 5.4% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Todd River Resources Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Todd River Resources insiders are reasonably well aligned, and optimistic for the future. 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. To help with this, we've discovered 5 warning signs (2 don't sit too well with us!) that you ought to be aware of before buying any shares in Todd River Resources.
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.
