Solaris Resources Inc. (TSE:SLS) shareholders (or potential shareholders) will be happy to see that the Executive Chairman, Richard Warke, recently bought a whopping CA$2.6m worth of stock, at a price of CA$13.05. While that only increased their holding size by 0.6%, it is still a big swing by our standards.
Solaris Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Executive Chairman Richard Warke was not the only time they bought Solaris Resources shares this year. They previously made an even bigger purchase of CA$58m worth of shares at a price of CA$8.25 per share. We do like to see buying, but this purchase was made at well below the current price of CA$13.84. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Happily, we note that in the last year insiders paid CA$107m for 14.91m shares. But insiders sold 220.11k shares worth CA$1.6m. Overall, Solaris Resources insiders were net buyers during the last year. They paid about CA$7.16 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Does Solaris 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. Solaris Resources insiders own 41% of the company, currently worth about CA$623m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Solaris Resources Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Solaris Resources. Looks promising! While we like knowing 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. To help with this, we've discovered 3 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Solaris Resources.
Of course Solaris 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. 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.
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