Glen Chipman Is The Executive Director of Commercial & Director of Iron Road Limited (ASX:IRD) And They Just Picked Up 20% More Shares

By
Simply Wall St
Published
May 10, 2022
ASX:IRD
Source: Shutterstock

Whilst it may not be a huge deal, we thought it was good to see that the Iron Road Limited (ASX:IRD) Executive Director of Commercial & Director, Glen Chipman, recently bought AU$55k worth of stock, for AU$0.18 per share. That purchase might not be huge but it did increase their holding by 20%.

See our latest analysis for Iron Road

Iron Road Insider Transactions Over The Last Year

Notably, that recent purchase by Executive Director of Commercial & Director Glen Chipman was not the only time they bought Iron Road shares this year. Earlier in the year, they paid AU$0.19 per share in a AU$57k purchase. That means that an insider was happy to buy shares at above the current price of AU$0.18. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Iron Road insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
ASX:IRD Insider Trading Volume May 10th 2022

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Iron Road

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own AU$5.3m worth of Iron Road stock, about 3.7% of the company. We consider this fairly low insider ownership.

So What Does This Data Suggest About Iron Road Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give 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 Iron Road insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 3 warning signs (2 make us uncomfortable!) that you ought to be aware of before buying any shares in Iron Road.

Of course Iron Road 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, but not derivative transactions.

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