Syrah Resources Insider Purchases Yet To Pay Off Regardless Of Recent Strength

Insiders who bought US$117.0k worth of Syrah Resources Limited (ASX:SYR) stock in the last year recovered part of their losses as the stock rose by 11% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at US$65k since the time of purchase.

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.

View our latest analysis for Syrah Resources

The Last 12 Months Of Insider Transactions At Syrah Resources

The MD, CEO & Director Shaun Verner made the biggest insider purchase in the last 12 months. That single transaction was for AU$100k worth of shares at a price of AU$0.55 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.24). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.

While Syrah Resources insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Syrah Resources Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Syrah Resources insiders own 4.5% of the company, worth about AU$11m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Syrah Resources Insiders?

It doesn't really mean much that no insider has traded Syrah Resources shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Syrah Resources insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Syrah Resources (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

Of course Syrah 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.

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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.