Great news for Sarama Resources Ltd (CVE:SWA): Insiders acquired stock in large numbers last year
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Sarama Resources Ltd's (CVE:SWA) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Sarama Resources
Sarama Resources Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Vice President of Corporate Development Paul Schmiede bought CA$112k worth of shares at a price of CA$0.19 per share. That means that even when the share price was higher than CA$0.12 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. 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.
Over the last year, we can see that insiders have bought 1.53m shares worth CA$296k. But they sold 125.00k shares for CA$21k. In total, Sarama Resources insiders bought more than they sold over the last year. 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.
Does Sarama Resources Boast High Insider Ownership?
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. Insiders own 13% of Sarama Resources shares, worth about CA$2.2m, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Sarama Resources Tell Us?
It doesn't really mean much that no insider has traded Sarama Resources shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Sarama Resources stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sarama Resources. To that end, you should learn about the 5 warning signs we've spotted with Sarama Resources (including 4 which don't sit too well with us).
But note: Sarama 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.
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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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