Firetail Resources Reaches AU$21m Market Cap Benefiting Insider Stock Buying

Insiders who bought Firetail Resources Limited (ASX:FTL) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$1.9m as a result of the stock's 10.0% gain over the same period. As a result, their original purchase of AU$144.1k worth of stock is now worth AU$168.2k.

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.

Our free stock report includes 3 warning signs investors should be aware of before investing in Firetail Resources. Read for free now.

The Last 12 Months Of Insider Transactions At Firetail Resources

Over the last year, we can see that the biggest insider purchase was by insider Brett Grosvenor for AU$80k worth of shares, at about AU$0.04 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.055. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Firetail Resources insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.047. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

View our latest analysis for Firetail Resources

Firetail 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 Firetail Resources Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Firetail Resources insiders own 8.4% of the company, worth about AU$1.8m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Firetail Resources Insider Transactions Indicate?

The fact that there have been no Firetail Resources insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Firetail Resources insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Firetail Resources. To help with this, we've discovered 3 warning signs (2 can't be ignored!) that you ought to be aware of before buying any shares in Firetail Resources.

Of course Firetail Resources 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 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.