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Investors who take an interest in Tamboran Resources Corporation (ASX:TBN) should definitely note that the Independent Non-Executive Director, Ryan Dalton, recently paid AU$35.97 per share to buy AU$450k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
See our latest analysis for Tamboran Resources
Tamboran Resources Insider Transactions Over The Last Year
The Independent Non-Executive Director David Siegel made the biggest insider purchase in the last 12 months. That single transaction was for AU$600k worth of shares at a price of AU$0.18 each. So it's clear an insider wanted to buy, at around the current price, which is AU$0.18. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Tamboran Resources share holders is that insiders were buying at near the current price.
In the last twelve months Tamboran Resources insiders were buying shares, but not selling. They paid about AU$0.26 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Tamboran 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.
Insider Ownership Of Tamboran Resources
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Tamboran Resources insiders own about AU$75m worth of shares. That equates to 20% 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.
So What Do The Tamboran Resources Insider Transactions Indicate?
The recent insider purchases are heartening. 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. Given that insiders also own a fair bit of Tamboran Resources we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Tamboran Resources is showing 4 warning signs in our investment analysis, and 2 of those don't sit too well with us...