Red Rock Resources Insiders Lose Out As Stock Sinks To UK£0.0015

Insiders who acquired UK£78k worth of Red Rock Resources Plc's (LON:RRR) stock at an average price of UK£0.0052 in the past 12 months may be dismayed by the recent 10% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth UK£23k, which is not great.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Red Rock Resources

The Last 12 Months Of Insider Transactions At Red Rock Resources

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman & CEO Andrew McMillan Bell bought UK£78k worth of shares at a price of UK£0.0053 per share. That means that an insider was happy to buy shares at above the current price of UK£0.0015. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Andrew McMillan Bell. We note that Andrew McMillan Bell was both the biggest buyer and the biggest seller.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Red Rock Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Red Rock 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. We usually like to see fairly high levels of insider ownership. Our data indicates that Red Rock Resources insiders own about UK£470k worth of shares (which is 13% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Red Rock Resources Insiders?

The fact that there have been no Red Rock Resources insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Red Rock Resources stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Red Rock Resources. Every company has risks, and we've spotted 6 warning signs for Red Rock Resources you should know about.

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, 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.