Steven Formica Bought 20% More Shares In Ragnar Metals

Even if it's not a huge purchase, we think it was good to see that Steven Formica, the Independent Non-Executive Chairman of Ragnar Metals Limited (ASX:RAG) recently shelled out AU$101k to buy stock, at AU$0.025 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 20%.

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The Last 12 Months Of Insider Transactions At Ragnar Metals

Notably, that recent purchase by Steven Formica is the biggest insider purchase of Ragnar Metals shares that we've seen in the last year. That implies that an insider found the current price of AU$0.026 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Ragnar Metals insider decided to buy shares at close to current prices. Steven Formica was the only individual insider to buy during the last year.

Steven Formica bought a total of 8.02m shares over the year at an average price of AU$0.025. 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 Ragnar Metals

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).

Does Ragnar Metals Boast High Insider Ownership?

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. Ragnar Metals insiders own about AU$3.5m worth of shares. That equates to 28% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Ragnar Metals Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Ragnar Metals we think they are probably pretty confident of a bright 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 example - Ragnar Metals has 4 warning signs we think 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.