Yandal Resources Stock Down 21% But Insiders Still In AU$193k Profit

Yandal Resources Limited (ASX:YRL) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 21% decline in the stock price. After accounting for the recent loss, the AU$506.2k worth of shares they purchased is now worth AU$699.4k, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Yandal Resources

The Last 12 Months Of Insider Transactions At Yandal Resources

In fact, the recent purchase by Eduard Eshuys was the biggest purchase of Yandal Resources shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (AU$0.11), we still think insider buying is a positive. 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.

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

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.

Insiders At Yandal Resources Have Bought Stock Recently

It's good to see that Yandal Resources insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$486k worth of shares. That shows some optimism about the company's future.

Insider Ownership Of Yandal Resources

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. Our data indicates that Yandal Resources insiders own about AU$4.1m worth of shares (which is 14% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Yandal Resources Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Yandal Resources stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Yandal Resources. For instance, we've identified 5 warning signs for Yandal Resources (4 are significant) you should be aware of.

But note: Yandal 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.