U.S. Markets closed
  • S&P Futures

    3,270.00
    -5.00 (-0.15%)
     
  • Dow Futures

    27,012.00
    -43.00 (-0.16%)
     
  • Nasdaq Futures

    10,959.50
    -29.50 (-0.27%)
     
  • Russell 2000 Futures

    1,479.20
    -3.60 (-0.24%)
     
  • Crude Oil

    39.57
    +0.26 (+0.66%)
     
  • Gold

    1,913.40
    +2.80 (+0.15%)
     
  • Silver

    24.70
    +0.32 (+1.30%)
     
  • EUR/USD

    1.1765
    -0.0008 (-0.0706%)
     
  • 10-Yr Bond

    0.6710
    -0.0230 (-3.31%)
     
  • Vix

    27.78
    +1.95 (+7.55%)
     
  • GBP/USD

    1.2814
    -0.0003 (-0.0256%)
     
  • BTC-USD

    10,456.67
    +18.95 (+0.18%)
     
  • CMC Crypto 200

    213.06
    -22.53 (-9.56%)
     
  • FTSE 100

    5,804.29
    -202.76 (-3.38%)
     
  • Nikkei 225

    23,360.30
    +40.90 (+0.18%)
     

Ian Middlemas Is The Chairman of Salt Lake Potash Limited (ASX:SO4) And They Just Picked Up 19% More Shares

Simply Wall St

Those following along with Salt Lake Potash Limited (ASX:SO4) will no doubt be intrigued by the recent purchase of shares by Ian Middlemas, Chairman of the company, who spent a stonking AU$1.4m on stock at an average price of AU$0.50. Not only is that a big swing, but it increased their holding size by 19%, which is definitely great to see.

Check out our latest analysis for Salt Lake Potash

Salt Lake Potash Insider Transactions Over The Last Year

Notably, that recent purchase by Ian Middlemas is the biggest insider purchase of Salt Lake Potash shares that we've seen in the last year. That implies that an insider found the current price of AU$0.51 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Salt Lake Potash share holders is that insiders were buying at near the current price.

Salt Lake Potash insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

Salt Lake Potash is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Salt Lake Potash insiders own about AU$23m worth of shares. That equates to 8.9% of the company. 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 Salt Lake Potash Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Salt Lake Potash we think they are probably pretty confident of a bright future. 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 Salt Lake Potash has 1 warning sign and it would be unwise to ignore it.

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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.