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Whilst it may not be a huge deal, we thought it was good to see that the Macro Metals Limited (ASX:M4M) Non-Executive Director, Tolga Kumova, recently bought AU$122k worth of stock, for AU$0.002 per share. That purchase might not be huge but it did increase their holding by 21%.
View our latest analysis for Macro Metals
Macro Metals Insider Transactions Over The Last Year
In fact, the recent purchase by Non-Executive Director Tolga Kumova was not their only acquisition of Macro Metals shares this year. They previously made an even bigger purchase of AU$324k worth of shares at a price of AU$0.005 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.029. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months Macro Metals insiders were buying shares, but not selling. They paid about AU$0.003 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
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. It appears that Macro Metals insiders own 25% of the company, worth about AU$26m. 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 Macro Metals Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Macro Metals we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 4 warning signs for Macro Metals (3 don't sit too well with us!) that we believe deserve your full attention.