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Potential Reward Minerals Ltd (ASX:RWD) shareholders may wish to note that the Executive Director, Michael Ruane, recently bought AU$198k worth of stock, paying AU$0.06 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 6.7%.
View our latest analysis for Reward Minerals
The Last 12 Months Of Insider Transactions At Reward Minerals
Notably, that recent purchase by Michael Ruane is the biggest insider purchase of Reward Minerals shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$0.061. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for Reward Minerals share holders is that an insider was buying at near the current price. Michael Ruane was the only individual insider to buy shares in the last twelve months.
Michael Ruane bought 4.53m shares over the last 12 months at an average price of AU$0.056. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Reward Minerals 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 Reward Minerals
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. It appears that Reward Minerals insiders own 35% of the company, worth about AU$4.9m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Reward Minerals Insiders?
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. When combined with notable insider ownership, these factors suggest Reward Minerals insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Reward Minerals. You'd be interested to know, that we found 5 warning signs for Reward Minerals and we suggest you have a look.