DevEx Resources' Recent Gains Improve Losses On Insider Purchases Worth AU$3.17m

Insiders who purchased AU$3.17m worth of DevEx Resources Limited (ASX:DEV) shares over the past year recouped some of their losses after price gained 19% last week. However, total losses seen by insiders are still AU$1.6m since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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DevEx Resources Insider Transactions Over The Last Year

The insider Graham Kluck made the biggest insider purchase in the last 12 months. That single transaction was for AU$2.2m worth of shares at a price of AU$0.33 each. That means that even when the share price was higher than AU$0.083 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months DevEx Resources insiders were buying shares, but not selling. They paid about AU$0.17 on average. This is nice to see since it implies that insiders might see value around current prices. 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!

Check out our latest analysis for DevEx Resources

DevEx Resources 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.

Insiders At DevEx Resources Have Bought Stock Recently

It's good to see that DevEx Resources insiders have made notable investments in the company's shares. Specifically, Non-Executive Chairman Timothy Rupert Goyder bought AU$768k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

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 32% of DevEx Resources shares, worth about AU$12m. 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 Do The DevEx Resources Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of DevEx Resources we think they are probably pretty confident of a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, DevEx Resources has 4 warning signs (and 3 which shouldn't be ignored) we think you should know about.

But note: DevEx Resources 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.