Yahoo Finance Shaun Verner Bought 5.0% More Shares In Syrah Resources
Even if it's not a huge purchase, we think it was good to see that Shaun Verner, the MD, CEO & Director of Syrah Resources Limited (ASX:SYR) recently shelled out AU$100k to buy stock, at AU$0.55 per share. Although the purchase is not a big one, increasing their shareholding by only 5.0%, it can be interpreted as a good sign.
See our latest analysis for Syrah Resources
The Last 12 Months Of Insider Transactions At Syrah Resources
The Independent Non-Executive Chairman James Askew made the biggest insider purchase in the last 12 months. That single transaction was for AU$182k worth of shares at a price of AU$0.91 each. That means that an insider was happy to buy shares at above the current price of AU$0.49. 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.
While Syrah Resources insiders bought shares during the last year, they didn't sell. They paid about AU$0.72 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Syrah Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Syrah Resources Boast High Insider Ownership?
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Syrah Resources insiders own 5.3% of the company, worth about AU$22m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Syrah Resources Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Syrah Resources we think they are probably pretty confident of a bright future. 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. Case in point: We've spotted 1 warning sign for Syrah Resources you should be aware of.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
