Whilst it may not be a huge deal, we thought it was good to see that the Jadar Resources Limited (ASX:JDR) Executive Director, Navinderjeet Singh, recently bought AU$69k worth of stock, for AU$0.039 per share. However, it only increased their shares held by 3.2%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for Jadar Resources
The Last 12 Months Of Insider Transactions At Jadar Resources
Notably, that recent purchase by Navinderjeet Singh is the biggest insider purchase of Jadar Resources shares that we've seen in the last year. That means that even when the share price was higher than AU$0.038 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay 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.
In the last twelve months Jadar Resources insiders were buying shares, but not selling. Their average price was about AU$0.025. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price of AU$0.038. 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 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).
Does Jadar Resources Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 24% of Jadar Resources shares, worth about AU$5.2m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Jadar Resources Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Jadar Resources insiders are well aligned, and that they may think the share price is too low. 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. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Jadar Resources.