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Quite a few insiders have dramatically grown their holdings in Great Boulder Resources Limited (ASX:GBR) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Great Boulder Resources
The Last 12 Months Of Insider Transactions At Great Boulder Resources
In the last twelve months, the biggest single purchase by an insider was when insider Chris Retzos bought AU$887k worth of shares at a price of AU$0.082 per share. That means that even when the share price was higher than AU$0.057 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Chris Retzos was also the biggest seller.
In the last twelve months insiders purchased 12.94m shares for AU$912k. But they sold 6.25m shares for AU$500k. In total, Great Boulder Resources insiders bought more than they sold over the last year. Their average price was about AU$0.07. 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Great Boulder Resources is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 12% of Great Boulder Resources shares, worth about AU$4.1m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.