Insider Buyers Lose Additional AU$170k As Cosmos Exploration Dips To AU$3.9m

Insiders who bought AU$295.0k worth of Cosmos Exploration Limited's (ASX:C1X) stock at an average buy price of AU$0.16 over the last year may be disappointed by the recent 14% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth AU$125.4k, which is not great.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Cosmos Exploration

The Last 12 Months Of Insider Transactions At Cosmos Exploration

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Jeremy Robinson bought AU$295k worth of shares at a price of AU$0.16 per share. That means that even when the share price was higher than AU$0.068 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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. Jeremy Robinson was the only individual insider to buy during the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 20% of Cosmos Exploration shares, worth about AU$766k. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Cosmos Exploration Tell Us?

It doesn't really mean much that no insider has traded Cosmos Exploration shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Cosmos Exploration and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cosmos Exploration. When we did our research, we found 5 warning signs for Cosmos Exploration (4 make us uncomfortable!) that we believe deserve your full attention.

But note: Cosmos Exploration may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.