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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Syrah Resources Limited's (ASX:SYR) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Syrah Resources
The Last 12 Months Of Insider Transactions At Syrah Resources
In the last twelve months, the biggest single purchase by an insider was when MD, CEO & Director Shaun Verner bought AU$100k worth of shares at a price of AU$0.55 per share. That means that an insider was happy to buy shares at above the current price of AU$0.23. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Syrah Resources insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 4.4% of Syrah Resources shares, worth about AU$11m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Syrah Resources Insiders?
The fact that there have been no Syrah Resources insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Syrah Resources insiders are doubting the company, and they do own shares. 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 example, Syrah Resources has 3 warning signs (and 1 which is potentially serious) we think you should know about.