Even if it's not a huge purchase, we think it was good to see that Michael Elliott, the Independent Non-Executive Director of Walkabout Resources Limited (ASX:WKT) recently shelled out AU$84k to buy stock, at AU$0.12 per share. Although the purchase is not a big one, increasing shareholding by only 5.3%, it can be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Walkabout Resources
In fact, the recent purchase by Independent Non-Executive Director Michael Elliott was not their only acquisition of Walkabout Resources shares this year. Earlier in the year, they paid AU$0.23 per share in a AU$230k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.12). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Michael Elliott.
Michael Elliott bought a total of 1.70m shares over the year at an average price of AU$0.18. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 20% of Walkabout Resources shares, worth about AU$8.6m. 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 Walkabout Resources Insiders?
Insider buying and selling have balanced each other out in the last three months, so we can't deduct anything useful from these recent trades. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Walkabout Resources insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 8 warning signs for Walkabout Resources (3 don't sit too well with us!) that we believe deserve your full attention.
But note: Walkabout 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.
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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