A CA$1.8m Market Cap Boost Pleasing ToSignature Resources Insiders

Insiders who bought Signature Resources Ltd. (CVE:SGU) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$1.8m as a result of the stock's 15% gain over the same period. In other words, the original CA$1.77m purchase is now worth CA$2.66m.

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.

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Signature Resources Insider Transactions Over The Last Year

The Independent Chairman of the Board Paolo Lostritto made the biggest insider purchase in the last 12 months. That single transaction was for CA$500k worth of shares at a price of CA$0.05 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.075. 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.

While Signature Resources insiders bought shares during the last year, they didn't sell. 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!

See our latest analysis for Signature Resources

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At Signature Resources Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Signature Resources. Overall, five insiders shelled out CA$770k for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership Of Signature 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Signature Resources insiders own 45% of the company, currently worth about CA$5.2m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Signature Resources Tell Us?

It is good to see recent purchasing. 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 Signature Resources. That's what I like to see! 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. You'd be interested to know, that we found 6 warning signs for Signature Resources and we suggest you have a look.

But note: Signature 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.