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In the last year, multiple insiders have substantially increased their holdings of Globe Metals & Mining Limited (ASX:GBE) stock, indicating that insiders' optimism about the company's prospects has increased.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Globe Metals & Mining
The Last 12 Months Of Insider Transactions At Globe Metals & Mining
Over the last year, we can see that the biggest insider purchase was by Non-Executive Chairperson Alice Wong for AU$3.9m worth of shares, at about AU$0.037 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.051. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Globe Metals & Mining insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Does Globe Metals & Mining Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Globe Metals & Mining insiders own 65% of the company, worth about AU$23m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Globe Metals & Mining Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Globe Metals & Mining insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Globe Metals & Mining. At Simply Wall St, we've found that Globe Metals & Mining has 5 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.