Whilst it may not be a huge deal, we thought it was good to see that the Resolute Mining Limited (ASX:RSG) Independent Non-Executive Chairman, Marthinus Botha, recently bought AU$71k worth of stock, for AU$0.47 per share. While that isn't the hugest buy, it actually boosted their shareholding by 330%, which is good to see.
The Last 12 Months Of Insider Transactions At Resolute Mining
Over the last year, we can see that the biggest insider purchase was by insider John Welborn for AU$101k worth of shares, at about AU$0.98 per share. That means that an insider was happy to buy shares at above the current price of AU$0.45. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Resolute Mining insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$0.65. These transactions suggest that insiders have considered the current price attractive. 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!
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Insider Ownership of Resolute Mining
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Resolute Mining insiders own 1.0% of the company, worth about AU$4.9m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Resolute Mining Insiders?
It's certainly positive to see the recent insider purchases. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Resolute Mining insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Resolute Mining that deserve your attention before buying any shares.
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, but not derivative transactions.
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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.
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