Insider Spends AU$100k Buying More Shares In Lunnon Metals \
Even if it's not a huge purchase, we think it was good to see that Ashley McDonald, the Non-Executive Director of Lunnon Metals Limited (ASX:LM8) recently shelled out AU$100k to buy stock, at AU$1.00 per share. While that isn't the hugest buy, it actually boosted their shareholding by 164%, which is good to see.
View our latest analysis for Lunnon Metals
The Last 12 Months Of Insider Transactions At Lunnon Metals
Notably, that recent purchase by Ashley McDonald is the biggest insider purchase of Lunnon Metals shares that we've seen in the last year. That means that even when the share price was higher than AU$0.98 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Ashley McDonald was the only individual insider to buy shares in the last twelve months.
Ashley McDonald purchased 161.04k shares over the year. The average price per share was AU$0.90. You can see the insider transactions (by companies and 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!
Lunnon Metals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Lunnon Metals
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Lunnon Metals insiders own about AU$15m worth of shares. That equates to 8.0% 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 Lunnon Metals Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Lunnon Metals 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. For instance, we've identified 2 warning signs for Lunnon Metals (1 shouldn't be ignored) you should be aware of.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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