Yahoo Finance Insiders who bought in the last 12 months lose an additional AU$33k as De Grey Mining Limited (ASX:DEG) drops to AU$1.4b
The recent 9.9% drop in De Grey Mining Limited's (ASX:DEG) stock could come as a blow to insiders who purchased AU$360k worth of stock at an average buy price of AU$1.20 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$327k which is not ideal.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for De Grey Mining
De Grey Mining Insider Transactions Over The Last Year
The Lead Independent Director Peter Hood made the biggest insider purchase in the last 12 months. That single transaction was for AU$360k worth of shares at a price of AU$1.20 each. That means that an insider was happy to buy shares at above the current price of AU$1.09. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Peter Hood.
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!
De Grey Mining 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 De Grey Mining
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. De Grey Mining insiders own about AU$81m worth of shares. That equates to 5.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At De Grey Mining Tell Us?
It doesn't really mean much that no insider has traded De Grey Mining shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in De Grey Mining and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing De Grey Mining. Our analysis shows 3 warning signs for De Grey Mining (2 are a bit unpleasant!) and we strongly recommend you look at these before investing.
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.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
