In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Caravel Minerals Limited (ASX:CVV), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Check out our latest analysis for Caravel Minerals
The Last 12 Months Of Insider Transactions At Caravel Minerals
Tim Ryan made the biggest insider purchase in the last 12 months. That single transaction was for AU$500k worth of shares at a price of AU$0.05 each. That means that even when the share price was higher than AU$0.049 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 15.1m shares worth AU$754k. While Caravel Minerals insiders bought shares last year, they didn't sell. You can see the insider transactions (by 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!
Caravel Minerals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Caravel Minerals Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Caravel Minerals. Stephen Copulos bought AU$48k worth of shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.