Strickland Metals Insider Buyers Net AU$190k Despite 12% Stock Decline

Strickland Metals Limited (ASX:STK) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 12% decline in the stock price. Even after accounting for the recent loss, the AU$785.7k worth of stock purchased by them is now worth AU$975.9k or in other words, their investment continues to give good returns.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Strickland Metals

The Last 12 Months Of Insider Transactions At Strickland Metals

In the last twelve months, the biggest single purchase by an insider was when insider Shane Ball bought AU$404k worth of shares at a price of AU$0.059 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.084), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Strickland Metals insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$0.068. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Strickland Metals 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.

Does Strickland Metals Boast High Insider Ownership?

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. It appears that Strickland Metals insiders own 19% of the company, worth about AU$36m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Strickland Metals Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Strickland Metals shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Strickland Metals and we see no evidence to suggest they are worried about the future. While it's good to be aware of 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. For instance, we've identified 5 warning signs for Strickland Metals (3 shouldn't be ignored) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.