Trade Alert: Fraser Range Metals Group Limited (ASX:FRN) Insider, Glenn Whiddon, Has Bought Some Shares Recently

Whilst it may not be a huge deal, we thought it was good to see that Glenn Whiddon, who is a company insider, recently bought AU$72k worth of stock, for AU$0.024 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 12.2%.

Check out our latest analysis for Fraser Range Metals Group

Fraser Range Metals Group Insider Transactions Over The Last Year

In fact, the recent purchase by Glenn Whiddon was the biggest purchase of Fraser Range Metals Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.02). 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 is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Glenn Whiddon was the only individual insider to buy over the year.

You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Insider Ownership of Fraser Range Metals Group

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Fraser Range Metals Group insiders own 41% of the company, worth about AU$2.2m. 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 Fraser Range Metals Group 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 last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Fraser Range Metals Group insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! Along with insider transactions, I recommend checking if Fraser Range Metals Group is growing revenue. This free chart of historic revenue and earnings should make that easy.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.