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How Much Are Rambler Metals and Mining PLC (LON:RMM) Insiders Spending On Buying Shares?

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Rambler Metals and Mining PLC (LON:RMM), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

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Check out our latest analysis for Rambler Metals and Mining

The Last 12 Months Of Insider Transactions At Rambler Metals and Mining

In fact, the recent purchase by Bradford Mills was the biggest purchase of Rambler Metals and Mining shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.0032). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Rambler Metals and Mining insiders were buying shares, but not selling. Their average price was about UK£0.038. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

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.

Rambler Metals and Mining Insiders Bought Stock Recently

Over the last quarter, Rambler Metals and Mining insiders have spent a meaningful amount on shares. Overall, four insiders shelled out UK£1.4m for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership of Rambler Metals and 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data isn't picking up on much insider ownership at Rambler Metals and Mining, though insiders do hold about UK£22k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

What Might The Insider Transactions At Rambler Metals and Mining Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. 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 Rambler Metals and Mining stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rambler Metals and Mining. Our analysis shows 4 warning signs for Rambler Metals and Mining (2 make us uncomfortable!) 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. 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.