With Strickland Metals Up 10%, Insider Buyers Count Their Returns

Last week, Strickland Metals Limited (ASX:STK) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 10% last week, resulting in a AU$20m increase in the company's market worth, implying a 59% gain on their initial purchase. In other words, the original AU$656.3k purchase is now worth AU$1.04m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

We've discovered 6 warning signs about Strickland Metals. View them for free.

The Last 12 Months Of Insider Transactions At Strickland Metals

The insider Shane Ball made the biggest insider purchase in the last 12 months. That single transaction was for AU$404k worth of shares at a price of AU$0.059 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.098. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Strickland Metals insiders were buying shares, but not selling. 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!

Check out our latest analysis for Strickland Metals

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

Insider Ownership Of Strickland Metals

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Strickland Metals insiders own about AU$42m worth of shares. That equates to 19% 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 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Strickland Metals. When we did our research, we found 6 warning signs for Strickland Metals (4 can't be ignored!) that we believe deserve your full attention.

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.