Trade Alert: Phillip Coulson At Carnavale Resources Limited (ASX:CAV), Has Just Spent AU$271k Buying 15% More Shares

Investors who take an interest in Carnavale Resources Limited (ASX:CAV) should definitely note that insider Phillip Coulson recently paid AU$0.009 per share to buy AU$271k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 15%.

View our latest analysis for Carnavale Resources

Carnavale Resources Insider Transactions Over The Last Year

In fact, the recent purchase by Phillip Coulson was the biggest purchase of Carnavale Resources shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of AU$0.0095. 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. In this case we're pleased to report that the insider bought shares at close to current prices. Phillip Coulson was the only individual insider to buy shares in the last twelve months.

Phillip Coulson bought 58.00m shares over the last 12 months at an average price of AU$0.008. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Carnavale Resources is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Carnavale Resources Boast High Insider Ownership?

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. Carnavale Resources insiders own about AU$7.4m worth of shares. That equates to 33% 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.

What Might The Insider Transactions At Carnavale Resources Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Carnavale Resources shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Carnavale Resources. Our analysis shows 4 warning signs for Carnavale Resources (2 can't be ignored!) and we strongly recommend you look at them before investing.

Of course Carnavale 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. 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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