Rain City Resources Insiders Are Down CA$329k But Regain Some Losses

Insiders who bought CA$561.2k worth of Rain City Resources Inc. (CSE:RAIN) stock in the last year recovered part of their losses as the stock rose by 20% last week. However, total losses seen by insiders are still CA$329k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Rain City Resources Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO & Director Benjamin Samuel Hill for CA$225k worth of shares, at about CA$0.075 per share. That means that an insider was happy to buy shares at above the current price of CA$0.03. 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. 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.

Over the last year, we can see that insiders have bought 7.75m shares worth CA$561k. But they sold 201.50k shares for CA$16k. Overall, Rain City Resources insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Rain City Resources

Rain City 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 Rain City Resources Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 26% of Rain City Resources shares, worth about CA$640k. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Rain City Resources Insiders?

It doesn't really mean much that no insider has traded Rain City Resources shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Rain City Resources insiders are doubting the company, and they do own shares. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 5 warning signs for Rain City Resources that deserve your attention before buying any shares.

But note: Rain City 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.