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Looking at Trek Metals Limited's (ASX:TKM ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Trek Metals
The Last 12 Months Of Insider Transactions At Trek Metals
There wasn't any very large single transaction over the last year, but we can still observe some trading.
Anthony Leibowitz purchased 1.75m shares over the year. The average price per share was AU$0.083. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Have Trek Metals Insiders Traded Recently?
In the last three months, Independent Non-Executive Director Valerie Hodgins sold AU$332 worth of shares. That's not much at all. The net selling is so small that it's hard to draw any conclusions from these recent transactions.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. It appears that Trek Metals insiders own 39% of the company, worth about AU$11m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Trek Metals Insiders?
While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we're not worried. However, our analysis of transactions over the last year is heartening. Insiders own shares in Trek Metals and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Trek Metals. When we did our research, we found 4 warning signs for Trek Metals (2 are significant!) that we believe deserve your full attention.
Of course Trek Metals may not be the best stock to buy. So you may wish to see this free collection of high quality companies.