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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Signature Resources Ltd.'s (CVE:SGU) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Signature Resources
The Last 12 Months Of Insider Transactions At Signature Resources
In the last twelve months, the biggest single purchase by an insider was when Independent Chairman of the Board Paolo Lostritto bought CA$500k worth of shares at a price of CA$0.05 per share. That means that even when the share price was higher than CA$0.045 (the recent price), an insider wanted to purchase shares. 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 Signature Resources insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. 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.
Does Signature Resources 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. Signature Resources insiders own 43% of the company, currently worth about CA$2.9m based on the recent share price. 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?
The fact that there have been no Signature Resources insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Signature Resources insiders feel good about the company's future. 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. To assist with this, we've discovered 6 warning signs that you should run your eye over to get a better picture of Signature Resources.