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Some of the losses seen by insiders who purchased UK£164.5k worth of Reabold Resources Plc (LON:RBD) shares over the past year were recovered after the stock increased by 24% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling UK£57k.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Reabold Resources Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Co-CEO & Executive Director Sachin Oza for UK£112k worth of shares, at about UK£0.0007 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.00046). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. 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. We note that Sachin Oza was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 234.05m shares for UK£165k. But insiders sold 16.74m shares worth UK£9.6k. In total, Reabold Resources insiders bought more than they sold over the last year. 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!
View our latest analysis for Reabold Resources
Reabold Resources 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. We usually like to see fairly high levels of insider ownership. Our data indicates that Reabold Resources insiders own about UK£358k worth of shares (which is 7.6% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Reabold Resources Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Reabold Resources shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Reabold Resources insiders are doubting 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. To help with this, we've discovered 5 warning signs (4 are potentially serious!) that you ought to be aware of before buying any shares in Reabold Resources.