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Looking at Redstone Resources Limited's (ASX:RDS ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Redstone Resources
Redstone Resources Insider Transactions Over The Last Year
The Non-Executive Director Edward Van Heemst made the biggest insider purchase in the last 12 months. That single transaction was for AU$76k worth of shares at a price of AU$0.008 each. That means that even when the share price was higher than AU$0.004 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Edward Van Heemst was the only individual insider to buy during the last year.
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!
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 Redstone Resources Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Redstone Resources insiders own about AU$908k worth of shares. That equates to 25% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Redstone Resources Tell Us?
It doesn't really mean much that no insider has traded Redstone Resources shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Redstone Resources and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Redstone Resources. Every company has risks, and we've spotted 5 warning signs for Redstone Resources (of which 4 are a bit unpleasant!) you should know about.