Yahoo Finance Quite a few insiders invested in Mayur Resources Ltd (ASX:MRL) last year which is positive news for shareholders
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 Mayur Resources Ltd (ASX:MRL), 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 Mayur Resources
The Last 12 Months Of Insider Transactions At Mayur Resources
In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Craig Ransley bought AU$500k worth of shares at a price of AU$0.10 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.15. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Mayur Resources insiders were buying shares, but not selling. They paid about AU$0.12 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 growing companies that insiders are buying.
Mayur Resources Insiders Bought Stock Recently
It's good to see that Mayur Resources insiders have made notable investments in the company's shares. We can see that Executive Chairman Craig Ransley paid AU$500k for shares in the company. No-one sold. That shows some optimism about the company's future.
Does Mayur 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 31% of Mayur Resources shares, worth about AU$14m. 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 Mayur Resources Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Mayur Resources we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mayur Resources. At Simply Wall St, we've found that Mayur Resources has 6 warning signs (4 are potentially serious!) that deserve your attention before going any further with your analysis.
But note: Mayur Resources 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.
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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.
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