Yahoo Finance Multiple insiders bought Salazar Resources Limited (CVE:SRL) stock earlier this year, a positive sign for shareholders
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Salazar Resources Limited's (CVE:SRL) instance, it's good news for shareholders.
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 Salazar Resources
Salazar Resources Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President Fredy Salazar for CA$291k worth of shares, at about CA$0.10 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.16. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While Salazar Resources insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Salazar Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Salazar Resources Insiders Bought Stock Recently
It's good to see that Salazar Resources insiders have made notable investments in the company's shares. Overall, three insiders shelled out CA$342k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Salazar Resources
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Salazar Resources insiders own about CA$5.4m worth of shares. That equates to 16% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Salazar Resources Insider Transactions Indicate?
It is good to see recent purchasing. 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 Salazar Resources insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Salazar Resources has 4 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.
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.
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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.
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