Wildcat Resources Reaches AU$269m Market Cap Benefiting Insider Stock Buying

Last week, Wildcat Resources Limited (ASX:WC8) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 10.0% last week, resulting in a AU$28m increase in the company's market worth, implying a 529% gain on their initial purchase. In other words, the original AU$729.7k purchase is now worth AU$4.59m.

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.

View our latest analysis for Wildcat Resources

Wildcat Resources Insider Transactions Over The Last Year

The Independent Non-Executive Chairman Jeff Elliott made the biggest insider purchase in the last 12 months. That single transaction was for AU$385k worth of shares at a price of AU$0.035 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.22. 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 Wildcat Resources insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Wildcat 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.

Does Wildcat 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 9.8% of Wildcat Resources shares, worth about AU$26m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Wildcat Resources Insiders?

It doesn't really mean much that no insider has traded Wildcat Resources shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Wildcat Resources insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Wildcat Resources. To help with this, we've discovered 5 warning signs (3 are potentially serious!) that you ought to be aware of before buying any shares in Wildcat Resources.

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 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.