In This Article:
Investors who take an interest in Infini Resources Limited (ASX:I88) should definitely note that the Executive Director, David Pevcic, recently paid AU$0.60 per share to buy AU$801k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 29%.
See our latest analysis for Infini Resources
The Last 12 Months Of Insider Transactions At Infini Resources
Notably, that recent purchase by David Pevcic is the biggest insider purchase of Infini Resources shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.56). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Infini Resources insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$0.50. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Infini Resources insiders own 63% of the company, currently worth about AU$23m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Infini Resources Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Infini Resources. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Infini Resources. For instance, we've identified 2 warning signs for Infini Resources (1 is potentially serious) you should be aware of.