Insiders who bought into Tanga Resources Limited (ASX:TRL) earlier this year might wish they'd invested more as stock gained 31%

By
Simply Wall St
Published
November 07, 2021
ASX:WIA
Source: Shutterstock

Insiders who bought Tanga Resources Limited (ASX:TRL) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$4.8m as a result of the stock's 31% gain over the same period. Put another way, the original AU$65k acquisition is now worth AU$119k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Tanga Resources

Tanga Resources Insider Transactions Over The Last Year

While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.

Tanga Resources insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
ASX:TRL Insider Trading Volume November 7th 2021

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

Does Tanga Resources Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Tanga Resources insiders own 13% of the company, worth about AU$2.6m. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Tanga Resources Tell Us?

The fact that there have been no Tanga Resources insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Tanga Resources insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tanga Resources. To that end, you should learn about the 5 warning signs we've spotted with Tanga Resources (including 3 which don't sit too well with us).

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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