Great Southern Mining Insiders Placed Bullish Bets Worth AU$1.13m

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Great Southern Mining Limited's (ASX:GSN) case, it's fantastic news for shareholders.

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 Great Southern Mining

The Last 12 Months Of Insider Transactions At Great Southern Mining

The insider Joseph Pinto made the biggest insider purchase in the last 12 months. That single transaction was for AU$759k worth of shares at a price of AU$0.036 each. That means that an insider was happy to buy shares at above the current price of AU$0.019. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Joseph Pinto was both the biggest buyer and the biggest seller.

Over the last year, we can see that insiders have bought 58.61m shares worth AU$1.1m. On the other hand they divested 17.69m shares, for AU$366k. In the last twelve months there was more buying than selling by Great Southern Mining insiders. Their average price was about AU$0.019. These transactions suggest that insiders have considered the current price attractive. 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!

Great Southern Mining is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Great Southern Mining Have Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Great Southern Mining. In total, insider Joseph Pinto bought AU$1.0m worth of shares in that time. But insider Joseph Pinto sold shares worth AU$366k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Does Great Southern Mining Boast High 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. Great Southern Mining insiders own about AU$8.1m worth of shares (which is 50% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Great Southern Mining Insiders?

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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Great Southern Mining. Looks promising! 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. To help with this, we've discovered 2 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Great Southern Mining.

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.

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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.