Dateline Resources Insider Buyers See Boost After Market Cap Rose AU$64m

Dateline Resources Limited (ASX:DTR) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 79%, resulting in a AU$64m rise in the company's market capitalisation, translating to a gain of 788% on their initial investment. As a result, their original purchase of AU$839.6k worth of stock is now worth AU$7.46m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Our free stock report includes 5 warning signs investors should be aware of before investing in Dateline Resources. Read for free now.

The Last 12 Months Of Insider Transactions At Dateline Resources

The MD, CEO & Executive Director Stephen Baghdadi made the biggest insider purchase in the last 12 months. That single transaction was for AU$802k worth of shares at a price of AU$0.006 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.052. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Stephen Baghdadi bought 143.40m shares over the last 12 months at an average price of AU$0.0059. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Dateline Resources

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

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 Dateline Resources insiders own 36% of the company, worth about AU$52m. 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 Dateline Resources Tell Us?

The fact that there have been no Dateline Resources insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Dateline Resources and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 5 warning signs for Dateline Resources (4 are a bit unpleasant) you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.