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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Yandal Resources Limited (ASX:YRL), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Yandal Resources
The Last 12 Months Of Insider Transactions At Yandal Resources
The insider Eduard Eshuys made the biggest insider purchase in the last 12 months. That single transaction was for AU$400k worth of shares at a price of AU$0.08 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.15. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months Yandal Resources insiders were buying shares, but not selling. 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!
Yandal 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 Yandal Resources Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Yandal Resources insiders own about AU$6.4m worth of shares. That equates to 16% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Yandal Resources Tell Us?
It doesn't really mean much that no insider has traded Yandal Resources shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Yandal Resources insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Yandal Resources. Case in point: We've spotted 4 warning signs for Yandal Resources you should be aware of, and 3 of them are a bit unpleasant.