Insiders Of Polymetals Resources Reap Rewards After Their Investment Jumps Another AU$271k

Last week, Polymetals Resources Ltd (ASX:POL) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 25% last week, resulting in a AU$13m increase in the company's market worth, implying a 17% gain on their initial purchase. As a result, their original purchase of AU$1.55m worth of stock is now worth AU$1.82m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Polymetals Resources

Polymetals Resources Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman David Sproule bought AU$1.4m worth of shares at a price of AU$0.28 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.33), we still think insider buying is a positive. 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.

While Polymetals Resources insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Insiders At Polymetals Resources Have Bought Stock Recently

It's good to see that Polymetals Resources insiders have made notable investments in the company's shares. Specifically, Executive Chairman David Sproule bought AU$1.6m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Does Polymetals Resources Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Polymetals Resources insiders own 45% of the company, currently worth about AU$28m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Polymetals Resources Insiders?

It is good to see the recent insider purchase. 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Polymetals Resources. That's what I like to see! 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. For instance, we've identified 4 warning signs for Polymetals Resources (2 shouldn't be ignored) you should be aware of.

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.

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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.