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Even if it's not a huge purchase, we think it was good to see that Larry Donaldson, the Chief Financial Officer of Rockhaven Resources Ltd. (CVE:RK) recently shelled out CA$100k to buy stock, at CA$0.29 per share. Even though that isn't a massive buy, it did increase their holding by 70%, which is arguably a good sign.
Check out our latest analysis for Rockhaven Resources
Rockhaven Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Larry Donaldson is the biggest insider purchase of Rockhaven Resources shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of CA$0.20. 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 is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Rockhaven Resources insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Rockhaven Resources
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. Insiders own 10% of Rockhaven Resources shares, worth about CA$3.7m, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Rockhaven Resources Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Rockhaven Resources stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 3 warning signs for Rockhaven Resources and we suggest you have a look.