Trade Alert: The Independent Non-Executive Director Of Ramelius Resources Limited (ASX:RMS), Michael Bohm, Has Just Spent AU$125k Buying 25% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Ramelius Resources Limited (ASX:RMS) Independent Non-Executive Director, Michael Bohm, recently bought AU$125k worth of stock, for AU$1.25 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 25%.

View our latest analysis for Ramelius Resources

The Last 12 Months Of Insider Transactions At Ramelius Resources

Over the last year, we can see that the biggest insider sale was by the MD, CEO & Director, Mark Zeptner, for AU$4.0m worth of shares, at about AU$2.28 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (AU$1.28). So it may not shed much light on insider confidence at current levels.

Happily, we note that in the last year insiders paid AU$251k for 200.22k shares. But insiders sold 1.99m shares worth AU$4.5m. In total, Ramelius Resources insiders sold more than they bought over the last year. 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!

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Insider Ownership of Ramelius 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. We usually like to see fairly high levels of insider ownership. Ramelius Resources insiders own about AU$18m worth of shares. That equates to 1.8% of the company. 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 Ramelius Resources Insiders?

It is good to see recent purchasing. However, the longer term transactions are not so encouraging. While recent transactions indicate confidence in Ramelius Resources, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. Overall they seem reasonably aligned. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Ramelius Resources you should be aware of.

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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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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