Coda Minerals Independent Non-Executive Chairman Acquires 17% More Stock

Potential Coda Minerals Limited (ASX:COD) shareholders may wish to note that the Independent Non-Executive Chairman, Keith Jones, recently bought AU$200k worth of stock, paying AU$0.10 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 17%.

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The Last 12 Months Of Insider Transactions At Coda Minerals

Notably, that recent purchase by Keith Jones is the biggest insider purchase of Coda Minerals shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$0.11. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. Happily, the Coda Minerals insiders decided to buy shares at close to current prices.

In the last twelve months Coda Minerals insiders were buying shares, but not selling. Their average price was about AU$0.057. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

Check out our latest analysis for Coda Minerals

Coda Minerals is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Coda Minerals insiders own 26% of the company, worth about AU$7.2m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Coda Minerals Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Coda Minerals shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Coda Minerals is showing 5 warning signs in our investment analysis, and 3 of those are concerning...

Of course Coda Minerals 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 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.