Skylark Minerals Insider Confidence Rewarded, Stock Hits AU$22m Market Cap

Insiders who bought Skylark Minerals Limited (ASX:SKM) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$4.2m as a result of the stock's 24% gain over the same period. Put another way, the original AU$570.0k acquisition is now worth AU$878.9k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Skylark Minerals

The Last 12 Months Of Insider Transactions At Skylark Minerals

In fact, the recent purchase by Nikolai Zelenskiy was the biggest purchase of Skylark Minerals shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (AU$0.32), 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.

Skylark Minerals insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Skylark Minerals 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.

Skylark Minerals Insiders Bought Stock Recently

Over the last quarter, Skylark Minerals insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought AU$550k worth of shares. This is a positive in our book as it implies some confidence.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Skylark Minerals insiders own 8.7% of the company, worth about AU$1.9m. 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!

What Might The Insider Transactions At Skylark Minerals Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Skylark Minerals insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Skylark Minerals. To that end, you should learn about the 5 warning signs we've spotted with Skylark Minerals (including 4 which are concerning).

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.