Whilst it may not be a huge deal, we thought it was good to see that the Walkabout Resources Limited (ASX:WKT) Independent Non-Executive Director, Michael Elliott, recently bought AU$84k worth of stock, for AU$0.12 per share. That might not be a big purchase but it only increased their holding by 5.3%, and could be interpreted as a good sign.
Walkabout Resources Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Non-Executive Director Michael Elliott was not their only acquisition of Walkabout Resources shares this year. They previously made an even bigger purchase of AU$230k worth of shares at a price of AU$0.23 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Michael Elliott was the only individual insider to buy over the year.
Michael Elliott bought 1.70m shares over the last 12 months at an average price of AU$0.18. The chart below shows insider transactions (by individuals) over the last year. 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.
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Walkabout Resources insiders own about AU$7.9m worth of shares. That equates to 20% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Walkabout Resources Insiders?
We can’t make any useful conclusions about recent trading, since insider buying and selling has been balanced. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Walkabout Resources and we see no evidence to suggest they are worried about 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. Every company has risks, and we’ve spotted 8 warning signs for Walkabout Resources (of which 3 make us uncomfortable!) you should know about.
Of course Walkabout 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.
If you spot an error that warrants correction, please contact the editor at email@example.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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.