Those following along with Saracen Mineral Holdings Limited (ASX:SAR) will no doubt be intrigued by the recent purchase of shares by Raleigh Finlayson, MD & Director of the company, who spent a stonking AU$1.6m on stock at an average price of AU$2.95. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 17%.
The Last 12 Months Of Insider Transactions At Saracen Mineral Holdings
In fact, the recent sale by MD & Director Raleigh Finlayson was not their only sale of Saracen Mineral Holdings shares this year. Earlier in the year, they fetched AU$3.71 per share in a -AU$3.7m sale. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It’s of some comfort that this sale was conducted at a price well above the current share price, which is AU$2.82. So it is hard to draw any strong conclusion from it.
In the last twelve months insiders purchased 597.62k shares for AU$1.8m. On the other hand they divested 1015000 shares, for AU$3.8m. All up, insiders sold more shares in Saracen Mineral Holdings than they bought, over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Saracen Mineral Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.6% of Saracen Mineral Holdings shares, worth about AU$18m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Saracen Mineral Holdings Tell Us?
It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn’t so positive. We don’t take much heart from transactions by Saracen Mineral Holdings insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. Overall they seem reasonably aligned. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Saracen Mineral Holdings.
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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