Even if it's not a huge purchase, we think it was good to see that David McGorman, the CEO & Director of Top Strike Resources Corp. (CSE:VENI) recently shelled out CA$102k to buy stock, at CA$0.015 per share. Even though that isn't a massive buy, it did increase their holding by 89%, which is a arguably a good sign.
Top Strike Resources Insider Transactions Over The Last Year
In fact, the recent purchase by David McGorman was the biggest purchase of Top Strike Resources shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of CA$0.015. 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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Top Strike Resources insiders bought shares last year, they didn't sell. The average buy price was around CA$0.02. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by individuals) over the last year. 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).
Insider Ownership of Top Strike Resources
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. Our data indicates that Top Strike Resources insiders own about CA$406k worth of shares (which is 15% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Top Strike Resources Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Top Strike Resources insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Top Strike Resources. For example, Top Strike Resources has 4 warning signs (and 3 which shouldn't be ignored) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.