Independent Chairman of the Board Bradford Mills Just Bought 67% More Shares In Rambler Metals and Mining PLC (LON:RMM)

Those following along with Rambler Metals and Mining PLC (LON:RMM) will no doubt be intrigued by the recent purchase of shares by Bradford Mills, Independent Chairman of the Board of the company, who spent a stonking UK£872k on stock at an average price of UK£0.26. That purchase boosted their holding by 67%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

View our latest analysis for Rambler Metals and Mining

Rambler Metals and Mining Insider Transactions Over The Last Year

Notably, that recent purchase by Bradford Mills is the biggest insider purchase of Rambler Metals and Mining shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.0032). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. 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.

Rambler Metals and Mining insiders may have bought shares in the last year, but they didn't sell any. Their average price was about UK£0.038. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Rambler Metals and Mining 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.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our information indicates that Rambler Metals and Mining insiders own about UK£22k worth of shares. We might be missing something but that seems like very low insider ownership.

So What Do The Rambler Metals and Mining Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Rambler Metals and Mining insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Rambler Metals and Mining has 4 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.

Of course Rambler Metals and Mining 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.

If you’re looking to trade Rambler Metals and Mining, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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