Have Insiders Been Buying Tigers Realm Coal Limited (ASX:TIG) Shares This Year?

By
Simply Wall St
Published
June 01, 2021
ASX:TIG
Source: Shutterstock

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Tigers Realm Coal Limited (ASX:TIG).

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. 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 logic dictates you should pay some attention to whether insiders are buying or selling shares. 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 Tigers Realm Coal

The Last 12 Months Of Insider Transactions At Tigers Realm Coal

Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Bruce Gray for AU$21m worth of shares, at about AU$0.008 per share. That means that even when the share price was higher than AU$0.007 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Bruce Gray was the only individual insider to buy shares in the last twelve months.

Bruce Gray purchased 4.05b shares over the year. The average price per share was AU$0.0087. 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!

insider-trading-volume
ASX:TIG Insider Trading Volume June 2nd 2021

Tigers Realm Coal is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Tigers Realm Coal

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Tigers Realm Coal insiders own 61% of the company, currently worth about AU$56m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Tigers Realm Coal Insiders?

It doesn't really mean much that no insider has traded Tigers Realm Coal shares in the last quarter. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Tigers Realm Coal insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (2 don't sit too well with us!) that you ought to be aware of before buying any shares in Tigers Realm Coal.

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, but not derivative transactions.

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