Several Insiders Invested In Reabold Resources Flagging Positive News

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Reabold Resources Plc (LON:RBD), that sends out a positive message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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Reabold Resources Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Co-CEO & Executive Director Stephen Williams bought UK£50k worth of shares at a price of UK£0.00055 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£0.00062), we still think insider buying is a positive. 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.

While Reabold Resources insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Reabold Resources

Reabold 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 Reabold 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. Our data indicates that Reabold Resources insiders own about UK£824k worth of shares (which is 13% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Reabold Resources Insider Transactions Indicate?

The fact that there have been no Reabold Resources insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Reabold Resources insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Reabold Resources. Case in point: We've spotted 3 warning signs for Reabold Resources you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.