Polymetals Resources Insiders Land Bargain With Gains Of AU$2.2m

Insiders who purchased Polymetals Resources Ltd (ASX:POL) shares in the past 12 months are unlikely to be deeply impacted by the stock's 10.0% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of AU$3.28m is now worth AU$5.51m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Polymetals Resources

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. We do like to see buying, but this purchase was made at well below the current price of AU$0.72. 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. They paid about AU$0.43 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!

View our latest analysis for Polymetals Resources

Polymetals Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Polymetals Resources Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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's great to see that Polymetals Resources insiders own 45% of the company, worth about AU$79m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Polymetals Resources Tell Us?

It doesn't really mean much that no insider has traded Polymetals Resources shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Polymetals Resources insiders feel good about the company's future. 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 2 warning signs for Polymetals Resources (1 makes us a bit uncomfortable) you should be aware of.

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.