The Executive Chairman of Xtract Resources Plc (LON:XTR), Colin Bird, Just Bought 9.5% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Xtract Resources Plc (LON:XTR) Executive Chairman, Colin Bird, recently bought UK£58k worth of stock, for UK£0.058 per share. However, it only increased their shares held by 9.5%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Xtract Resources

Xtract Resources Insider Transactions Over The Last Year

Notably, that recent purchase by Colin Bird is the biggest insider purchase of Xtract Resources shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of UK£0.066. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. Colin Bird was the only individual insider to buy shares in the last twelve months.

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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Xtract Resources insiders own about UK£3.2m worth of shares (which is 6.6% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Xtract Resources Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Xtract Resources stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 5 warning signs for Xtract Resources (of which 2 can't be ignored!) you should know about.

Of course Xtract Resources 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 decide to trade Xtract Resources, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all 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.