Toubani Resources Reaches AU$84m Market Cap Benefiting Insider Stock Buying

Insiders who bought Toubani Resources Limited (ASX:TRE) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$10m as a result of the stock's 14% gain over the same period. As a result, the stock they originally bought for US$478.6k is now worth US$1.01m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Toubani Resources

The insider Timothy Kestell made the biggest insider purchase in the last 12 months. That single transaction was for AU$150k worth of shares at a price of AU$0.11 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.33), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Toubani Resources insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around AU$0.15. To my mind it is good 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. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Toubani Resources

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

Does Toubani Resources 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. Insiders own 7.2% of Toubani Resources shares, worth about AU$6.1m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Toubani Resources Insiders?

The fact that there have been no Toubani Resources insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Toubani Resources stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Toubani Resources is showing 3 warning signs in our investment analysis, and 2 of those don't sit too well with us...

Of course Toubani Resources 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 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.