Investors who take an interest in Rome Resources Ltd. (CVE:RMR) should definitely note that the CEO, President & Director, Mark Gasson, recently paid CA$0.25 per share to buy CA$500k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 28%.
Check out our latest analysis for Rome Resources
The Last 12 Months Of Insider Transactions At Rome Resources
Over the last year, we can see that the biggest insider purchase was by insider Klaus Eckhof for CA$800k worth of shares, at about CA$0.20 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.24. 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.
Happily, we note that in the last year insiders paid CA$2.8m for 12.37m shares. On the other hand they divested 114.00k shares, for CA$28k. In the last twelve months there was more buying than selling by Rome Resources insiders. They paid about CA$0.22 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Rome 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. It's great to see that Rome Resources insiders own 49% of the company, worth about CA$9.7m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Rome Resources Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Rome Resources. That's what I like to see! 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. When we did our research, we found 3 warning signs for Rome Resources (2 are concerning!) that we believe deserve your full attention.