Insider Stock Buyers At Green Technology Metals Recouped Some Losses This Week

Some of the losses seen by insiders who purchased AU$97.3k worth of Green Technology Metals Limited (ASX:GT1) shares over the past year were recovered after the stock increased by 17% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling AU$44k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Green Technology Metals

The Last 12 Months Of Insider Transactions At Green Technology Metals

The MD & Executive DIrector Cameron Henry made the biggest insider purchase in the last 12 months. That single transaction was for AU$97k worth of shares at a price of AU$0.13 each. That means that even when the share price was higher than AU$0.071 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Cameron Henry was the only individual insider to buy during the last year.

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 Technology Metals 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 Technology Metals Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Green Technology Metals insiders own 21% of the company, worth about AU$5.7m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Green Technology Metals Insiders?

It doesn't really mean much that no insider has traded Green Technology Metals shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Green Technology Metals and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Green Technology Metals. Be aware that Green Technology Metals is showing 6 warning signs in our investment analysis, and 2 of those can't be ignored...

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.