Yahoo Finance The Non-Independent Non-Executive Director of Rafaella Resources Limited (ASX:RFR), Robert Wrixon, Just Bought 32% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Rafaella Resources Limited (ASX:RFR) Non-Independent Non-Executive Director, Robert Wrixon, recently bought AU$100k worth of stock, for AU$0.035 per share. That purchase might not be huge but it did increase their holding by 32%.
Check out our latest analysis for Rafaella Resources
The Last 12 Months Of Insider Transactions At Rafaella Resources
The insider Kenneth Hall made the biggest insider purchase in the last 12 months. That single transaction was for AU$435k worth of shares at a price of AU$0.073 each. That means that even when the share price was higher than AU$0.037 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.
Rafaella Resources insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around AU$0.035. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Rafaella Resources is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Rafaella Resources
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. We usually like to see fairly high levels of insider ownership. Rafaella Resources insiders own about AU$2.7m worth of shares. That equates to 20% 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 Rafaella Resources Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Rafaella Resources shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Rafaella Resources has 6 warning signs and it would be unwise to ignore these.
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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