Ironveld Slides As Insider Purchases Lose Another UK£106k

Insiders who acquired UK£177.5k worth of Ironveld Plc's (LON:IRON) stock at an average price of UK£0.0032 in the past 12 months may be dismayed by the recent 10% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only UK£71.7k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Ironveld

The Last 12 Months Of Insider Transactions At Ironveld

Over the last year, we can see that the biggest insider purchase was by Executive Chairman John Wardle for UK£157k worth of shares, at about UK£0.0031 per share. That means that even when the share price was higher than UK£0.0013 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 55.13m shares for UK£177k. But they sold 5.13m shares for UK£20k. In total, Ironveld insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Ironveld is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Ironveld Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Ironveld insiders own 27% of the company, worth about UK£1.4m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Ironveld Insiders?

It doesn't really mean much that no insider has traded Ironveld shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Ironveld and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ironveld. Case in point: We've spotted 5 warning signs for Ironveld you should be aware of, and 4 of them can't be ignored.

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.

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.