Insiders Buying Voltaic Strategic Resources Might Wish They Invested More, Stock Gains 21%

Voltaic Strategic Resources Limited (ASX:VSR) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 21% resulting in a AU$4.0m addition to the company’s market value. As a result, the stock they originally bought for AU$197.0k is now worth AU$392.3k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Voltaic Strategic Resources Insider Transactions Over The Last Year

In fact, the recent purchase by Michael Walshe was the biggest purchase of Voltaic Strategic Resources shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.04. 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.

In the last twelve months Voltaic Strategic Resources insiders were buying shares, but not selling. The average buy price was around AU$0.02. 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 a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Voltaic Strategic Resources

Voltaic Strategic Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Voltaic Strategic Resources Insiders Bought Stock Recently

Over the last quarter, Voltaic Strategic Resources insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought AU$197k worth of shares. That shows some optimism about the company's future.

Insider Ownership

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. It appears that Voltaic Strategic Resources insiders own 28% of the company, worth about AU$6.4m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Voltaic Strategic Resources Tell Us?

It's certainly positive to see the recent insider purchases. 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. Insiders likely see value in Voltaic Strategic Resources 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 Voltaic Strategic Resources. Every company has risks, and we've spotted 3 warning signs for Voltaic Strategic Resources (of which 1 is concerning!) you should know about.

But note: Voltaic Strategic Resources 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.