Yahoo Finance Resolute Mining Limited (ASX:RSG) drops to AU$265m and insiders who purchased earlier this year lose another US$56k
The recent 19% drop in Resolute Mining Limited's (ASX:RSG) stock could come as a blow to insiders who purchased US$114k worth of stock at an average buy price of US$0.47 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$59k, which is not what they expected.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Resolute Mining
The Last 12 Months Of Insider Transactions At Resolute Mining
The Independent Non-Executive Chairman Marthinus Botha made the biggest insider purchase in the last 12 months. That single transaction was for AU$71k worth of shares at a price of AU$0.47 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.24). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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 Resolute Mining insiders were buying shares, but not selling. 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!
Resolute Mining is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Resolute Mining Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own AU$2.7m worth of Resolute Mining stock, about 1.0% of the company. We consider this fairly low insider ownership.
So What Does This Data Suggest About Resolute Mining Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Resolute Mining insiders bought more shares in the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for Resolute Mining and we suggest you have a look.
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.
