De Grey Mining Insiders Added AU$1.35m Of Stock To Their Holdings

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of De Grey Mining Limited (ASX:DEG), it sends a favourable message to the company's shareholders.

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 De Grey Mining

The Last 12 Months Of Insider Transactions At De Grey Mining

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Emma Scotney for AU$350k worth of shares, at about AU$1.05 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$1.43), 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.

In the last twelve months insiders purchased 1.31m shares for AU$1.3m. On the other hand they divested 500.00k shares, for AU$600k. In the last twelve months there was more buying than selling by De Grey Mining insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

De Grey Mining Insiders Bought Stock Recently

Over the last quarter, De Grey Mining insiders have spent a meaningful amount on shares. Independent Non-Executive Chairman Simon Lill spent AU$128k on stock, and there wasn't any selling. This makes one think the business has some good points.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that De Grey Mining insiders own 2.7% of the company, worth about AU$91m. 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 De Grey Mining Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest De Grey Mining 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. For example, De Grey Mining has 2 warning signs (and 1 which is significant) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.