Whilst it may not be a huge deal, we thought it was good to see that the Sultan Resources Limited (ASX:SLZ) Independent Non-Executive Chairman, Jeremy King, recently bought AU$81k worth of stock, for AU$0.20 per share. Even though that isn't a massive buy, it did increase their holding by 137%, which is arguably a good sign.
Sultan Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Jeremy King is the biggest insider purchase of Sultan Resources shares that we've seen in the last year. That implies that an insider found the current price of AU$0.22 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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 Sultan Resources share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Jeremy King.
Jeremy King bought a total of 500.82k shares over the year at an average price of AU$0.19. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Sultan Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Sultan Resources Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Sultan Resources insiders own 36% of the company, worth about AU$4.7m. 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 Sultan Resources Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give 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 Sultan Resources insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sultan Resources. For instance, we've identified 3 warning signs for Sultan Resources (1 is potentially serious) you should be aware of.
Of course Sultan Resources may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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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