Peter Smith Bought 2.9% More Shares In Truscott Mining

Whilst it may not be a huge deal, we thought it was good to see that the Truscott Mining Corporation Limited (ASX:TRM) Executive Chairman & MD, Peter Smith, recently bought AU$131k worth of stock, for AU$0.07 per share. Although the purchase is not a big one, increasing their shareholding by only 2.9%, it can be interpreted as a good sign.

See our latest analysis for Truscott Mining

The Last 12 Months Of Insider Transactions At Truscott Mining

In fact, the recent purchase by Peter Smith was the biggest purchase of Truscott Mining shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of AU$0.07 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. Peter Smith was the only individual insider to buy during the last year.

Peter Smith bought a total of 6.87m shares over the year at an average price of AU$0.064. 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!

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.

Insider Ownership Of Truscott Mining

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Truscott Mining insiders own 67% of the company, currently worth about AU$9.0m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Truscott Mining Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Truscott Mining insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Truscott Mining has 4 warning signs (3 make us uncomfortable!) that deserve your attention before going any further with your analysis.

But note: Truscott Mining 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.

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

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.