Ozz Resources Loses AU$1.2m Market Value But Insiders See Windfall Of AU$77k

Insiders who bought Ozz Resources Limited (ASX:OZZ) in the last 12 months may probably not pay attention to the stock's recent 14% drop. After accounting for the recent loss, the AU$192.9k worth of shares they purchased is now worth AU$270.3k, suggesting a good return on their investment.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Ozz Resources

The Last 12 Months Of Insider Transactions At Ozz Resources

In the last twelve months, the biggest single purchase by an insider was when insider Jason Peterson bought AU$102k worth of shares at a price of AU$0.05 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.08. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Jason Peterson bought 3.38m shares over the last 12 months at an average price of AU$0.057. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Ozz Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Ozz Resources

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 23% of Ozz Resources shares, worth about AU$1.7m. 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 Ozz Resources Insiders?

It doesn't really mean much that no insider has traded Ozz Resources shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Ozz Resources and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ozz Resources. For instance, we've identified 4 warning signs for Ozz Resources (3 are a bit concerning) you should be aware of.

Of course Ozz Resources 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.