Stock Analysis

Torque Metals Limited (ASX:TOR) drops to AU$9.4m and insiders who purchased earlier this year lose another AU$95k

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Insiders who acquired AU$352k worth of Torque Metals Limited's (ASX:TOR) stock at an average price of AU$0.14 in the past 12 months may be dismayed by the recent 10.0% price decline. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth AU$257k, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Torque Metals

Torque Metals Insider Transactions Over The Last Year

The insider Darren Carter made the biggest insider purchase in the last 12 months. That single transaction was for AU$293k worth of shares at a price of AU$0.13 each. That means that an insider was happy to buy shares at above the current price of AU$0.099. 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Torque Metals insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

ASX:TOR Insider Trading Volume March 25th 2023

Torque Metals 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.

Insiders At Torque Metals Have Bought Stock Recently

Over the last quarter, Torque Metals insiders have spent a meaningful amount on shares. insider Darren Carter spent AU$332k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.

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. Torque Metals insiders own about AU$1.8m worth of shares. That equates to 20% 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 Torque Metals Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Torque Metals shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Torque Metals. Every company has risks, and we've spotted 5 warning signs for Torque Metals you should know about.

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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