Green Critical Minerals Insider Confidence Rewarded, Stock Hits AU$36m Market Cap

Green Critical Minerals Limited (ASX:GCM) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 36% resulting in a AU$9.5m addition to the company’s market value. Put another way, the original AU$162.5k acquisition is now worth AU$475.0k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Green Critical Minerals

Green Critical Minerals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Leon Pretorius for AU$162k worth of shares, at about AU$0.0065 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.019. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Green Critical Minerals 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 Green Critical Minerals Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Green Critical Minerals insiders own about AU$4.3m worth of shares (which is 12% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Green Critical Minerals Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Green Critical Minerals insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Green Critical Minerals. Our analysis shows 5 warning signs for Green Critical Minerals (4 make us uncomfortable!) and we strongly recommend you look at them before investing.

Of course Green Critical Minerals 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.