Investors who take an interest in Tietto Minerals Limited (ASX:TIE) should definitely note that the Independent Non-Executive Director, Hanjing Xu, recently paid AU$0.26 per share to buy AU$200k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 95%.
Tietto Minerals Insider Transactions Over The Last Year
In fact, the recent purchase by Hanjing Xu was the biggest purchase of Tietto Minerals shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is AU$0.27. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Tietto Minerals share holders is that insiders were buying at near the current price.
In the last twelve months Tietto Minerals insiders were buying shares, but not selling. They paid about AU$0.20 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Tietto Minerals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Tietto Minerals
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 18% of Tietto Minerals shares, worth about AU$16m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Tietto Minerals Tell Us?
It is good to see recent purchasing. 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. Insiders likely see value in Tietto Minerals shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Tietto Minerals, you should check out this free report on analyst forecasts for the company.
But note: Tietto Minerals 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.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned.
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