Insider Spends AU$1.0m Buying More Shares In Macro Metals

Macro Metals Limited (ASX:M4M) shareholders (or potential shareholders) will be happy to see that the Non-Executive Director, Shawn Tilley, recently bought a whopping AU$1.0m worth of stock, at a price of AU$0.01. Not only is that a big swing, but it increased their holding size by 33%, which is definitely great to see.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Macro Metals Insider Transactions Over The Last Year

In fact, the recent purchase by Non-Executive Director Shawn Tilley was not their only acquisition of Macro Metals shares this year. Earlier in the year, they paid AU$0.01 per share in a AU$1.0m purchase. That means that an insider was happy to buy shares at above the current price of AU$0.008. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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. Shawn Tilley was the only individual insider to buy during the last year.

Shawn Tilley bought 301.93m shares over the last 12 months at an average price of AU$0.01. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Macro Metals

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Macro Metals

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. Insiders own 33% of Macro Metals shares, worth about AU$11m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Macro Metals Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Macro Metals shares, given these transactions (along with notable insider ownership of the company). 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. Case in point: We've spotted 5 warning signs for Macro Metals you should be aware of, and 3 of them don't sit too well with us.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.