When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in DiscovEx Resources Limited's (ASX:DCX) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for DiscovEx Resources
DiscovEx Resources Insider Transactions Over The Last Year
The Independent Non-Executive Chairman Heath Hellewell made the biggest insider purchase in the last 12 months. That single transaction was for AU$100k worth of shares at a price of AU$0.0025 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.003. 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.
In the last twelve months DiscovEx 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. 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 growing companies that insiders are buying.
Does DiscovEx 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. Our data indicates that DiscovEx Resources insiders own about AU$1.2m worth of shares (which is 12% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About DiscovEx Resources Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more DiscovEx Resources stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 4 warning signs for DiscovEx Resources (of which 3 are concerning!) you should know about.