How Many Tietto Minerals Limited (ASX:TIE) Shares Did Insiders Buy, In The Last Year?

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Tietto Minerals Limited (ASX:TIE).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for Tietto Minerals

The Last 12 Months Of Insider Transactions At Tietto Minerals

The MD & Director, Caigen Wang, made the biggest insider sale in the last 12 months. That single transaction was for AU$844k worth of shares at a price of AU$0.25 each. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$0.37. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 18% of Caigen Wang's holding. The only individual insider seller over the last year was Caigen Wang.

In the last twelve months insiders purchased 1.61m shares for AU$1m. But insiders sold 3.38m shares worth AU$844k. In total, Tietto Minerals insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Tietto Minerals insiders own about AU$31m worth of shares. That equates to 18% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Tietto Minerals Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Tietto Minerals shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Tietto Minerals insiders are doubting the company, and they do own shares. 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 example, Tietto Minerals has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

But note: Tietto Minerals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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