Insiders Of Macro Metals Reap Rewards After Their Investment Jumps Another AU$7.2m

Insiders who bought Macro Metals Limited (ASX:M4M) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$11m as a result of the stock's 21% gain over the same period. As a result, the stock they originally bought for AU$3.14m is now worth AU$10.3m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Macro Metals

The Last 12 Months Of Insider Transactions At Macro Metals

In fact, the recent purchase by 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. We do like to see buying, but this purchase was made at well below the current price of AU$0.017. 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. They paid about AU$0.0052 on average. 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. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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.

Macro Metals Insiders Bought Stock Recently

It's good to see that Macro Metals insiders have made notable investments in the company's shares. Specifically, Director Shawn Tilley bought AU$2.0m worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Does Macro Metals Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Macro Metals insiders own 32% of the company, worth about AU$21m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Macro Metals Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Macro Metals shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Macro Metals. At Simply Wall St, we've found that Macro Metals has 5 warning signs (4 can't be ignored!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.