Insiders' AU$1.29m Investments In Red Following Richmond Vanadium Technology's AU$11m Dip In Market Value

Insiders who acquired AU$1.29m worth of Richmond Vanadium Technology Limited's (ASX:RVT) stock at an average price of AU$0.38 in the past 12 months may be dismayed by the recent 14% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only AU$1.04m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Richmond Vanadium Technology

The Last 12 Months Of Insider Transactions At Richmond Vanadium Technology

In fact, the recent purchase by Jinru Liu was the biggest purchase of Richmond Vanadium Technology shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.30). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Jinru Liu.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Richmond Vanadium Technology is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Richmond Vanadium Technology

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Richmond Vanadium Technology insiders own about AU$8.8m worth of shares (which is 13% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Richmond Vanadium Technology Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Richmond Vanadium Technology insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Richmond Vanadium Technology. To that end, you should learn about the 4 warning signs we've spotted with Richmond Vanadium Technology (including 2 which are a bit unpleasant).

Of course Richmond Vanadium Technology may not be the best stock to buy. So you may wish to see this free collection of high quality 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.