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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Trigg Minerals Limited (ASX:TMG), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Trigg Minerals
Trigg Minerals Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Yonglu Yu for AU$357k worth of shares, at about AU$0.007 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.009. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Trigg Minerals insiders were buying shares, but not selling. Their average price was about AU$0.0087. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Insiders At Trigg Minerals Have Bought Stock Recently
It's good to see that Trigg Minerals insiders have made notable investments in the company's shares. Overall, two insiders shelled out AU$700k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Does Trigg Minerals Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Trigg Minerals insiders own about AU$931k worth of shares. That equates to 24% 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 Trigg Minerals Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Trigg Minerals insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Trigg Minerals. Case in point: We've spotted 5 warning signs for Trigg Minerals you should be aware of.