Yahoo Finance Should You Be Worried About Insider Transactions At Intermin Resources Ltd (ASX:IRC)?
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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Intermin Resources Ltd (ASX:IRC).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
View our latest analysis for Intermin Resources
Intermin Resources Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Non–Executive Chairman Peter Bilbe bought AU$247k worth of shares at a price of AU$0.14 per share. That means that an insider was happy to buy shares at above the current price of AU$0.12. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Peter Bilbe. Notably Peter Bilbe was also the biggest seller, having sold AU$259k worth of shares.
Over the last year we saw more insider selling of Intermin Resources shares, than buying. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Intermin 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 38% of Intermin Resources shares, worth about AU$11m. 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 Does This Data Suggest About Intermin Resources Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at Intermin Resources in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. Along with insider transactions, I recommend checking if Intermin Resources is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
