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Even if it's not a huge purchase, we think it was good to see that Brett Grosvenor, the Executive Chairman of the Board of Firetail Resources Limited (ASX:FTL) recently shelled out AU$80k to buy stock, at AU$0.04 per share. While that isn't the hugest buy, it actually boosted their shareholding by 51%, which is good to see.
View our latest analysis for Firetail Resources
Firetail Resources Insider Transactions Over The Last Year
In fact, the recent purchase by Brett Grosvenor was the biggest purchase of Firetail Resources shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (AU$0.077), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Firetail Resources insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Firetail 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.
Does Firetail Resources Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 16% of Firetail Resources shares, worth about AU$2.5m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Firetail Resources Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Firetail Resources shares, given these transactions (along with notable insider ownership of the company). 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. Our analysis shows 4 warning signs for Firetail Resources (2 can't be ignored!) and we strongly recommend you look at these before investing.