Insider Spends AU$122k Buying More Shares In Macro Metals

Whilst it may not be a huge deal, we thought it was good to see that the Macro Metals Limited (ASX:M4M) Non-Executive Director, Tolga Kumova, recently bought AU$122k worth of stock, for AU$0.002 per share. That purchase might not be huge but it did increase their holding by 21%.

See our latest analysis for Macro Metals

The Last 12 Months Of Insider Transactions At Macro Metals

Notably, that recent purchase by Non-Executive Director Tolga Kumova was not the only time they bought Macro Metals shares this year. They previously made an even bigger purchase of AU$324k worth of shares at a price of AU$0.005 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.029. 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.

Macro Metals insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$0.003. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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

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 Macro Metals insiders own 25% of the company, worth about AU$26m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Macro Metals Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Macro Metals we think they are probably pretty confident of a bright future. While we like knowing 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. Every company has risks, and we've spotted 4 warning signs for Macro Metals (of which 3 are potentially serious!) you should know about.

But note: Macro Metals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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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.