Rimfire Pacific Mining Insider Buyers Net AU$1.4m Despite 12% Stock Decline

Insiders who bought Rimfire Pacific Mining Limited (ASX:RIM) in the last 12 months may probably not pay attention to the stock's recent 12% drop. Reason being, despite the recent loss, insiders original purchase value of AU$426.9k is now worth AU$1.86m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Rimfire Pacific Mining

Rimfire Pacific Mining Insider Transactions Over The Last Year

The insider Trevor Nairn made the biggest insider purchase in the last 12 months. That single transaction was for AU$257k worth of shares at a price of AU$0.0083 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.03), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Rimfire Pacific Mining insiders bought shares during the last year, they didn't sell. Their average price was about AU$0.0069. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Rimfire Pacific Mining is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

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. It appears that Rimfire Pacific Mining insiders own 16% of the company, worth about AU$11m. 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 Rimfire Pacific Mining Tell Us?

It doesn't really mean much that no insider has traded Rimfire Pacific Mining shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Rimfire Pacific Mining insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 5 warning signs for Rimfire Pacific Mining (of which 2 make us uncomfortable!) you should know about.

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.