Insiders Give Up AU$112k As Surefire Resources Stock Drops To AU$0.009

Insiders who acquired AU$556.4k worth of Surefire Resources NL's (ASX:SRN) stock at an average price of AU$0.011 in the past 12 months may be dismayed by the recent 18% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$443.9k which is not ideal.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Surefire Resources

The Last 12 Months Of Insider Transactions At Surefire Resources

In the last twelve months, the biggest single purchase by an insider was when insider Michael Giuliano bought AU$492k worth of shares at a price of AU$0.011 per share. That means that even when the share price was higher than AU$0.009 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

Surefire Resources 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!

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

Insiders At Surefire Resources Have Bought Stock Recently

It's good to see that Surefire Resources insiders have made notable investments in the company's shares. insider Michael Giuliano spent AU$492k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.

Insider Ownership Of Surefire Resources

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. It appears that Surefire Resources insiders own 26% of the company, worth about AU$4.7m. 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 Does This Data Suggest About Surefire Resources Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Surefire Resources we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 5 warning signs for Surefire Resources (3 are a bit unpleasant!) that we believe deserve your full attention.

Of course Surefire Resources 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.