Yahoo Finance CEO & Director of Ferro-Alloy Resources Nicholas Bridgen Buys 12% More Shares \
Ferro-Alloy Resources Limited (LON:FAR) shareholders (or potential shareholders) will be happy to see that the CEO & Director, Nicholas Bridgen, recently bought a whopping UK£650k worth of stock, at a price of UK£0.10. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 12%.
View our latest analysis for Ferro-Alloy Resources
Ferro-Alloy Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Nicholas Bridgen is the biggest insider purchase of Ferro-Alloy Resources shares that we've seen in the last year. That implies that an insider found the current price of UK£0.11 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. Nicholas Bridgen was the only individual insider to buy 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!
Ferro-Alloy Resources 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 Ferro-Alloy Resources
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 28% of Ferro-Alloy Resources shares, worth about UK£14m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Ferro-Alloy Resources Insiders?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Ferro-Alloy Resources insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ferro-Alloy Resources. When we did our research, we found 4 warning signs for Ferro-Alloy Resources (1 makes us a bit uncomfortable!) that we believe deserve your full attention.
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.
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, but not derivative transactions.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
