Insider Spends AU$129k Buying More Shares In Strickland Metals

Even if it's not a huge purchase, we think it was good to see that Anthony McClure, the Independent Non-Executive Chairman of Strickland Metals Limited (ASX:STK) recently shelled out AU$129k to buy stock, at AU$0.13 per share. Although the purchase is not a big one, increasing their shareholding by only 7.6%, it can be interpreted as a good sign.

Check out our latest analysis for Strickland Metals

Strickland Metals Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chief Executive Officer Andrew Bray bought AU$1.1m worth of shares at a price of AU$0.043 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.13. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Strickland Metals insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Strickland Metals insiders own about AU$58m worth of shares. That equates to 27% of the company. 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 Strickland Metals Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Strickland Metals shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 3 warning signs for Strickland Metals (2 are a bit unpleasant) you should be aware of.

Of course Strickland 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.