Stelar Metals Stock Down 15% But Insiders Still In AU$135k Profit

Stelar Metals Limited (ASX:SLB) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 15% decline in the stock price. After accounting for the recent loss, the AU$193.4k worth of shares they purchased is now worth AU$328.5k, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Stelar Metals

The Last 12 Months Of Insider Transactions At Stelar Metals

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chair Stephen Biggins bought AU$106k worth of shares at a price of AU$0.23 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.36. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Stelar Metals 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Stelar Metals Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 28% of Stelar Metals shares, worth about AU$6.5m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Stelar Metals Insider Transactions Indicate?

The fact that there have been no Stelar Metals insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Stelar Metals insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Stelar Metals. Every company has risks, and we've spotted 6 warning signs for Stelar Metals (of which 2 are a bit concerning!) you should know about.

Of course Stelar Metals 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.