In This Article:
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Signature Resources Ltd. (CVE:SGU), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Signature Resources
The Last 12 Months Of Insider Transactions At Signature Resources
Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board Paolo Lostritto for CA$500k worth of shares, at about CA$0.05 per share. So it's clear an insider wanted to buy, at around the current price, which is CA$0.055. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
While Signature Resources insiders bought shares during the last year, they didn't sell. Their average price was about CA$0.045. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!
Signature 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 Signature Resources Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Signature Resources insiders own 43% of the company, worth about CA$3.5m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Signature Resources Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Signature Resources shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Signature Resources insiders think the business has merit. 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. At Simply Wall St, we found 6 warning signs for Signature Resources that deserve your attention before buying any shares.