Yahoo Finance The MD, CEO & Director of Resolute Mining Limited (ASX:RSG), John Welborn, Just Bought 2.5% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Resolute Mining Limited (ASX:RSG) MD, CEO & Director, John Welborn, recently bought AU$101k worth of stock, for AU$0.98 per share. Although the purchase is not a big one, increasing their shareholding by only 2.5%, it can be interpreted as a good sign.
See our latest analysis for Resolute Mining
The Last 12 Months Of Insider Transactions At Resolute Mining
In fact, the recent purchase by MD, CEO & Director John Welborn was not their only acquisition of Resolute Mining shares this year. Earlier in the year, they paid AU$0.74 per share in a AU$126k purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.97. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 428.13k shares worth AU$353k. But they sold 52.00k shares for AU$76k. Overall, Resolute Mining insiders were net buyers during the last year. They paid about AU$0.82 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Resolute Mining is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Resolute Mining Boast High 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. We usually like to see fairly high levels of insider ownership. Insiders own 0.8% of Resolute Mining shares, worth about AU$8.2m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Resolute Mining Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Resolute Mining insiders are reasonably well aligned, and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 2 warning signs with Resolute Mining and understanding them should be part of your investment process.
But note: Resolute Mining may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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.
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