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Potential Vanadium Resources Limited (ASX:VR8) shareholders may wish to note that insider Faldi Ismail recently bought AU$147k worth of stock, paying AU$0.026 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 40%.
Vanadium Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Faldi Ismail is the biggest insider purchase of Vanadium Resources shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$0.029. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Vanadium Resources insiders decided to buy shares at close to current prices.
Vanadium Resources insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.025 on average. 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!
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.
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. It appears that Vanadium Resources insiders own 38% of the company, worth about AU$3.7m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Vanadium Resources Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Vanadium 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. While conducting our analysis, we found that Vanadium Resources has 3 warning signs and it would be unwise to ignore them.
But note: Vanadium Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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