Legacy Minerals Holdings Decline Means Insider Profits Down To AU$95k

Insiders who bought Legacy Minerals Holdings Limited (ASX:LGM) stock lover the last 12 months are probably not as affected by last week’s 20% loss. After accounting for the recent loss, the AU$199.7k worth of shares they purchased is now worth AU$294.4k, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Legacy Minerals Holdings

The Last 12 Months Of Insider Transactions At Legacy Minerals Holdings

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman David Carland bought AU$106k worth of shares at a price of AU$0.14 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.20. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months Legacy Minerals Holdings insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 Legacy Minerals Holdings insiders own 37% of the company, worth about AU$7.8m. 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 Legacy Minerals Holdings Insiders?

It doesn't really mean much that no insider has traded Legacy Minerals Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Legacy Minerals Holdings and we see no evidence to suggest they are worried about the future. 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. For instance, we've identified 5 warning signs for Legacy Minerals Holdings (3 are concerning) you should be aware of.

Of course Legacy Minerals Holdings 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.