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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Skyharbour Resources Ltd. (CVE:SYH), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
See our latest analysis for Skyharbour Resources
The Last 12 Months Of Insider Transactions At Skyharbour Resources
In the last twelve months, the biggest single purchase by an insider was when President Jordan Trimble bought CA$159k worth of shares at a price of CA$0.45 per share. That means that even when the share price was higher than CA$0.35 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Jordan Trimble was also the biggest seller, having sold CA$156k worth of shares.
Happily, we note that in the last year insiders paid CA$209k for 499k shares. But they sold 380k for CA$156k. In the last twelve months there was more buying than selling by Skyharbour Resources insiders. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Skyharbour Resources is not the only stock insiders are buying. So take a peek at this freelist of growing companies with insider buying.
Are Skyharbour Resources Insiders Buying Or Selling?
In the last quarter we saw insiders spend CA$7.3k on shares. But that was only a smidgen more than the CA$1.2k worth of sales. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.
Insider Ownership of Skyharbour 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Skyharbour Resources insiders own 2.9% of the company, worth about CA$649k. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Skyharbour Resources Tell Us?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Skyharbour Resources insiders bought more shares in the company. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free .
But note: Skyharbour Resources may not be the best stock to buy. So take a peek at this freelist of interesting companies with high ROE and low debt.
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.