Yahoo Finance Bullish Rainbow Rare Earths Insiders Loaded Up On US$827.7k Of Stock
In the last year, multiple insiders have substantially increased their holdings of Rainbow Rare Earths Limited (LON:RBW) stock, indicating that insiders' optimism about the company's prospects has increased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Rainbow Rare Earths
Rainbow Rare Earths Insider Transactions Over The Last Year
The Non-Executive Chairman Adonis Pouroulis made the biggest insider purchase in the last 12 months. That single transaction was for UK£765k worth of shares at a price of UK£0.14 each. That implies that an insider found the current price of UK£0.15 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices. Notably Adonis Pouroulis was also the biggest seller.
Over the last year, we can see that insiders have bought 6.24m shares worth UK£828k. On the other hand they divested 5.60m shares, for UK£765k. Overall, Rainbow Rare Earths insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Rainbow Rare Earths is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Rainbow Rare Earths
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Rainbow Rare Earths insiders own about UK£26m worth of shares. That equates to 27% of the company. 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 Rainbow Rare Earths Tell Us?
We can't make any useful conclusions about recent trading, since insider buying and selling has been balanced. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Rainbow Rare Earths insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 3 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Rainbow Rare Earths.
Of course Rainbow Rare Earths may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
