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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 Warriedar Resources Limited's (ASX:WA8) 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 Warriedar Resources
The Last 12 Months Of Insider Transactions At Warriedar Resources
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Dianmin Chen bought AU$200k worth of shares at a price of AU$0.047 per share. That means that an insider was happy to buy shares at above the current price of AU$0.044. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Warriedar 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 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).
Insiders At Warriedar Resources Have Bought Stock Recently
Over the last quarter, Warriedar Resources insiders have spent a meaningful amount on shares. Specifically, Independent Non-Executive Director Dianmin Chen bought AU$200k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
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. Our data indicates that Warriedar Resources insiders own about AU$2.9m worth of shares (which is 8.6% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Warriedar Resources Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Warriedar Resources stock. 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 Warriedar Resources (2 make us uncomfortable!) and we strongly recommend you look at these before investing.