Insiders saw their AU$2.1m investment bump up to AU$4.1m after Jervois Global Limited (ASX:JRV) soared 15% last week

By
Simply Wall St
Published
March 19, 2022
ASX:JRV
Source: Shutterstock

Jervois Global Limited (ASX:JRV) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 15%, resulting in a AU$167m rise in the company's market capitalisation. As a result, the stock they originally bought for AU$2.1m is now worth AU$4.1m.

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 Jervois Global

The Last 12 Months Of Insider Transactions At Jervois Global

Over the last year, we can see that the biggest insider purchase was by Executive General Manager of Commercial Greg Young for AU$1.4m worth of shares, at about AU$0.44 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.85), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Jervois Global insiders were buying shares, but not selling. 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!

insider-trading-volume
ASX:JRV Insider Trading Volume March 19th 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.

Does Jervois Global Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Jervois Global insiders own 2.0% of the company, worth about AU$25m. 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 Do The Jervois Global Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Jervois Global 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 Jervois Global. When we did our research, we found 3 warning signs for Jervois Global (2 shouldn't be ignored!) that we believe deserve your full attention.

Of course Jervois Global 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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