Viewing insider transactions for WA1 Resources Ltd's (ASX:WA1 ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for WA1 Resources
WA1 Resources Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Mark Savich for AU$200k worth of shares, at about AU$2.00 per share. We do like to see buying, but this purchase was made at well below the current price of AU$5.50. 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.
Mark Savich purchased 372.34k shares over the year. The average price per share was AU$0.67. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
WA1 Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does WA1 Resources Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company 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. WA1 Resources insiders own about AU$70m worth of shares. That equates to 23% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At WA1 Resources Tell Us?
It doesn't really mean much that no insider has traded WA1 Resources shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in WA1 Resources and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for WA1 Resources (1 can't be ignored) you should be aware of.
But note: WA1 Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.