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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Industrial Minerals Ltd's (ASX:IND) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Industrial Minerals Insider Transactions Over The Last Year
The Non-Executive Chairman Ashley Pattison made the biggest insider purchase in the last 12 months. That single transaction was for AU$119k worth of shares at a price of AU$0.17 each. That means that even when the share price was higher than AU$0.17 (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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Industrial Minerals insiders were buying shares, but not selling. The average buy price was around AU$0.19. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Industrial Minerals
Industrial Minerals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Industrial Minerals
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Industrial Minerals insiders own 36% of the company, worth about AU$4.9m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Industrial Minerals Tell Us?
The fact that there have been no Industrial Minerals insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Industrial Minerals and their transactions don't cause us concern. While it's good to be aware of 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 that end, you should learn about the 6 warning signs we've spotted with Industrial Minerals (including 5 which are potentially serious).