With Trigg Minerals Up 10.0%, Insider Buyers Count Their Returns

Last week, Trigg Minerals Limited (ASX:TMG) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 10.0% last week, resulting in a AU$431k increase in the company's market worth, implying a 27% gain on their initial purchase. As a result, the stock they originally bought for AU$726.4k is now worth AU$919.3k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Trigg Minerals

The Last 12 Months Of Insider Transactions At Trigg Minerals

The insider Yonglu Yu made the biggest insider purchase in the last 12 months. That single transaction was for AU$357k worth of shares at a price of AU$0.007 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.011. 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 Trigg Minerals insiders were buying shares, but not selling. The average buy price was around AU$0.0087. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Trigg Minerals is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Trigg Minerals Have Bought Stock Recently

It's good to see that Trigg Minerals insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$700k worth of shares. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Trigg Minerals

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Trigg Minerals insiders own about AU$1.1m worth of shares. That equates to 24% 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.

What Might The Insider Transactions At Trigg Minerals Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Trigg Minerals insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Trigg Minerals. For example - Trigg Minerals has 5 warning signs we think you should be aware of.

But note: Trigg 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com