In This Article:
Even if it's not a huge purchase, we think it was good to see that Ronald Miller, the Non-Executive Director of Redcastle Resources Limited (ASX:RC1) recently shelled out AU$100k to buy stock, at AU$0.009 per share. While that isn't the hugest buy, it actually boosted their shareholding by 204%, which is good to see.
See our latest analysis for Redcastle Resources
The Last 12 Months Of Insider Transactions At Redcastle Resources
In fact, the recent purchase by Ronald Miller was the biggest purchase of Redcastle Resources shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is AU$0.0095. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Ronald Miller.
Ronald Miller purchased 13.21m shares over the year. The average price per share was AU$0.0094. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Redcastle 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Redcastle Resources insiders own about AU$603k worth of shares (which is 8.5% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.
So What Do The Redcastle Resources Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Redcastle Resources stock. 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. At Simply Wall St, we found 5 warning signs for Redcastle Resources that deserve your attention before buying any shares.