Insiders who purchased eMetals Limited (ASX:EMT) stock last year recover some losses which currently stand at AU$26k

By
Simply Wall St
Published
January 14, 2022
ASX:EMT
Source: Shutterstock

Some of the losses seen by insiders who purchased AU$76k worth of eMetals Limited (ASX:EMT) shares over the past year were recovered after the stock increased by 11% over the past week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at AU$26k since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for eMetals

The Last 12 Months Of Insider Transactions At eMetals

In the last twelve months, the biggest single purchase by an insider was when Independent Director Mathew Walker bought AU$76k worth of shares at a price of AU$0.031 per share. That means that an insider was happy to buy shares at above the current price of AU$0.02. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Mathew Walker was the only individual insider to buy during the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
ASX:EMT Insider Trading Volume January 14th 2022

eMetals is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of eMetals

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. From our data, it seems that eMetals insiders own 9.3% of the company, worth about AU$1.5m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About eMetals Insiders?

It doesn't really mean much that no insider has traded eMetals shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think eMetals insiders are doubting 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. Our analysis shows 5 warning signs for eMetals (3 are significant!) and we strongly recommend you look at these before investing.

Of course eMetals 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, but not derivative transactions.

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