Those following along with Laramide Resources Ltd. (TSE:LAM) will no doubt be intrigued by the recent purchase of shares by Marc Henderson, President of the company, who spent a stonking CA$905k on stock at an average price of CA$22.62. While that only increased their holding size by 0.3%, it is still a big swing by our standards.
Laramide Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Marc Henderson is the biggest insider purchase of Laramide Resources shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.26). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Laramide Resources insiders were buying shares, but not selling. They paid about CA$0.53 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Laramide Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Laramide Resources Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Laramide Resources insiders own 11% of the company, worth about CA$4.8m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Laramide Resources 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. 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 Laramide Resources stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Laramide Resources has 4 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
Of course Laramide Resources may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
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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. 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. Thank you for reading.
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