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Investors who take an interest in Dalaroo Metals Ltd (ASX:DAL) should definitely note that the Non-Executive Director, Bilal Ahmad, recently paid AU$0.016 per share to buy AU$200k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
Check out our latest analysis for Dalaroo Metals
Dalaroo Metals Insider Transactions Over The Last Year
Notably, that recent purchase by Bilal Ahmad is the biggest insider purchase of Dalaroo Metals shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of AU$0.02. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
Dalaroo Metals 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
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 21% of Dalaroo Metals shares, worth about AU$392k. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Dalaroo Metals Tell Us?
It's certainly positive to see the recent insider purchases. 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. Insiders likely see value in Dalaroo Metals shares, given these transactions (along with notable insider ownership of the company). 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. Be aware that Dalaroo Metals is showing 4 warning signs in our investment analysis, and 3 of those shouldn't be ignored...
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.