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Potential Castile Resources Limited (ASX:CST) shareholders may wish to note that the Independent Non-Executive Chairman, Peter Cook, recently bought AU$275k worth of stock, paying AU$0.065 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 27%.
See our latest analysis for Castile Resources
The Last 12 Months Of Insider Transactions At Castile Resources
In fact, the recent purchase by Peter Cook was the biggest purchase of Castile Resources shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than AU$0.064 (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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Castile Resources insiders were buying shares, but not selling. 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!
Castile Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Castile 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. It appears that Castile Resources insiders own 22% of the company, worth about AU$4.3m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Castile Resources Insider Transactions Indicate?
It is good to see recent purchasing. 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. Given that insiders also own a fair bit of Castile Resources we think they are probably pretty confident of a bright future. While it's good to be aware of 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. Our analysis shows 4 warning signs for Castile Resources (2 are a bit concerning!) and we strongly recommend you look at them before investing.