In This Article:
Quite a few insiders have dramatically grown their holdings in Indiana Resources Limited (ASX:IDA) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Indiana Resources
The Last 12 Months Of Insider Transactions At Indiana Resources
The insider Peter Koller made the biggest insider purchase in the last 12 months. That single transaction was for AU$800k worth of shares at a price of AU$0.058 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.097. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 20.82m shares worth AU$1.2m. But insiders sold 11.65m shares worth AU$737k. In the last twelve months there was more buying than selling by Indiana Resources insiders. 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!
Indiana Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Indiana Resources Have Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Indiana Resources. In total, three insiders bought AU$940k worth of shares in that time. But we did see insider Peter Koller sell shares worth AU$737k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Does Indiana Resources Boast High 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 26% of Indiana Resources shares, worth about AU$16m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Indiana Resources Insiders?
It's certainly positive to see the recent insider purchases. 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. Given that insiders also own a fair bit of Indiana Resources we think they are probably pretty confident of 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. For instance, we've identified 3 warning signs for Indiana Resources (1 is significant) you should be aware of.