Yahoo Finance Despite Recent Gains, Dalaroo Metals Insiders Are Still Down AU$100k
Insiders who bought AU$204.0k worth of Dalaroo Metals Ltd (ASX:DAL) stock in the last year have seen some of their losses recouped as the stock gained 14% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling AU$100k.
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.
View our latest analysis for Dalaroo Metals
The Last 12 Months Of Insider Transactions At Dalaroo Metals
Over the last year, we can see that the biggest insider purchase was by Non-Executive Chairman David Quinlivan for AU$100k worth of shares, at about AU$0.05 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.024). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Dalaroo Metals 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Dalaroo Metals is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Dalaroo Metals insiders own about AU$471k 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.
So What Does This Data Suggest About Dalaroo Metals Insiders?
It doesn't really mean much that no insider has traded Dalaroo Metals shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Dalaroo Metals and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dalaroo Metals. Every company has risks, and we've spotted 5 warning signs for Dalaroo Metals (of which 4 are a bit concerning!) you should know about.
Of course Dalaroo Metals may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
