An Insider Of Castile Resources Picks Up 57% More Stock

Castile Resources Limited (ASX:CST) shareholders (or potential shareholders) will be happy to see that insider Peter Cook recently bought a whopping AU$751k worth of stock, at a price of AU$0.084. That purchase boosted their holding by 57%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

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Castile Resources Insider Transactions Over The Last Year

Notably, that recent purchase by Peter Cook is the biggest insider purchase of Castile Resources shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (AU$0.11), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Castile Resources insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Castile Resources

Castile Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Castile Resources Boast High 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 27% of Castile Resources shares, worth about AU$8.9m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Castile Resources Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Castile Resources insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 5 warning signs (2 are potentially serious!) that you ought to be aware of before buying any shares in Castile Resources.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.