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Insider Buying: The Jadar Resources Limited (ASX:JDR) Executive Director Just Bought 3.6% More Shares

Simply Wall St
·3 mins read

Even if it's not a huge purchase, we think it was good to see that Navinderjeet Singh, the Executive Director of Jadar Resources Limited (ASX:JDR) recently shelled out AU$66k to buy stock, at AU$0.031 per share. Although the purchase is not a big one, increasing their shareholding by only 3.6%, it can be interpreted as a good sign.

Check out our latest analysis for Jadar Resources

Jadar Resources Insider Transactions Over The Last Year

Notably, that recent purchase by Executive Director Navinderjeet Singh was not the only time they bought Jadar Resources shares this year. Earlier in the year, they paid AU$0.039 per share in a AU$69k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.031). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Jadar Resources insiders bought shares during the last year, they didn't sell. Their average price was about AU$0.027. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

Jadar Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Jadar Resources Boast High Insider Ownership?

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. It appears that Jadar Resources insiders own 20% of the company, worth about AU$3.7m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Jadar Resources Tell Us?

It's certainly positive to see the recent insider purchase. 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 Jadar Resources we think they are probably pretty confident of a bright future. 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. At Simply Wall St, we've found that Jadar Resources has 5 warning signs (2 are significant!) that deserve your attention before going any further with your analysis.

But note: Jadar 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.

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.