Insider Returns Down To AU$111k As Infini Resources' Stock Dips 10%

Insiders who bought Infini Resources Limited (ASX:I88) in the last 12 months may probably not pay attention to the stock's recent 10% drop. After accounting for the recent loss, the AU$314.8k worth of shares they purchased is now worth AU$426.1k, suggesting a good return on their investment.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Infini Resources

Infini Resources Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Sufian Ahmad for AU$185k worth of shares, at about AU$0.29 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.47. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Infini Resources insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$0.35. To my mind it is good that insiders have invested their own money 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Infini 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.

Infini Resources Insiders Bought Stock Recently

It's good to see that Infini Resources insiders have made notable investments in the company's shares. Overall, two insiders shelled out AU$105k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Insider Ownership Of Infini Resources

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Infini Resources insiders own 60% of the company, currently worth about AU$19m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Infini Resources Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Infini Resources insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Infini Resources. When we did our research, we found 3 warning signs for Infini Resources (2 are potentially serious!) that we believe deserve your full attention.

Of course Infini 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.