Non-Executive Chairman of Meeka Metals Paul Chapman Buys 55% More Shares

Investors who take an interest in Meeka Metals Limited (ASX:MEK) should definitely note that the Non-Executive Chairman, Paul Chapman, recently paid AU$0.05 per share to buy AU$200k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 55%.

See our latest analysis for Meeka Metals

Meeka Metals Insider Transactions Over The Last Year

The insider Anthony Poli made the biggest insider purchase in the last 12 months. That single transaction was for AU$1.8m worth of shares at a price of AU$0.047 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.086), we still think insider buying is a positive. 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.

Meeka Metals insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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 Meeka Metals

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Meeka Metals insiders own 24% of the company, worth about AU$29m. 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 Do The Meeka Metals Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Meeka Metals we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Meeka Metals. Case in point: We've spotted 3 warning signs for Meeka Metals you should be aware of, and 1 of these is potentially serious.

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.