Yahoo Finance Insider Spends AU$94k Buying More Shares In Great Southern Mining
Whilst it may not be a huge deal, we thought it was good to see that the Great Southern Mining Limited (ASX:GSN) Executive Chairman & CEO, John Terpu, recently bought AU$94k worth of stock, for AU$0.019 per share. Although the purchase is not a big one, increasing their shareholding by only 2.8%, it can be interpreted as a good sign.
Check out our latest analysis for Great Southern Mining
The Last 12 Months Of Insider Transactions At Great Southern Mining
In fact, the recent purchase by Executive Chairman & CEO John Terpu was not their only acquisition of Great Southern Mining shares this year. Earlier in the year, they paid AU$0.02 per share in a AU$300k purchase. That means that even when the share price was higher than AU$0.019 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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.
In the last twelve months Great Southern Mining insiders were buying shares, but not selling. 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 growing companies that insiders are buying.
Insider Ownership Of Great Southern Mining
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Great Southern Mining insiders own about AU$6.6m worth of shares (which is 46% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Great Southern Mining Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Great Southern Mining insiders are well aligned, and quite possibly think the share price is too low. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Great Southern Mining. For example, Great Southern Mining has 5 warning signs (and 4 which are significant) we think you should know about.
Of course Great Southern Mining 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.
