Insider Buying: The Tigers Realm Coal Limited (ASX:TIG) Non-Executive Director Just Bought 52% More Shares

By
Simply Wall St
Published
January 16, 2021

Those following along with Tigers Realm Coal Limited (ASX:TIG) will no doubt be intrigued by the recent purchase of shares by Bruce Gray, Non-Executive Director of the company, who spent a stonking AU$21m on stock at an average price of AU$0.008. That increased their holding by a full 52%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

Check out our latest analysis for Tigers Realm Coal

The Last 12 Months Of Insider Transactions At Tigers Realm Coal

Notably, that recent purchase by Bruce Gray is the biggest insider purchase of Tigers Realm Coal shares that we've seen in the last year. That implies that an insider found the current price of AU$0.009 per share to be enticing. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. Bruce Gray was the only individual insider to buy during the last year.

Bruce Gray bought a total of 4.05b shares over the year at an average price of AU$0.0087. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

ASX:TIG Insider Trading Volume January 16th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Tigers Realm Coal 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. We usually like to see fairly high levels of insider ownership. Tigers Realm Coal insiders own 41% of the company, currently worth about AU$48m 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 Do The Tigers Realm Coal Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Tigers Realm Coal. Looks promising! While we like knowing 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. When we did our research, we found 4 warning signs for Tigers Realm Coal (2 can't be ignored!) that we believe deserve your full attention.

Of course Tigers Realm Coal 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, 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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