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John Terpu Is The Executive Chairman & CEO of Great Southern Mining Limited (ASX:GSN) And They Just Spent AU$360k On Shares

Investors who take an interest in Great Southern Mining Limited (ASX:GSN) should definitely note that the Executive Chairman & CEO, John Terpu, recently paid AU$0.04 per share to buy AU$360k worth of the stock. Although the purchase only increased their holding by 7.7%, it is still a solid purchase in our view.

View our latest analysis for Great Southern Mining

Great Southern Mining Insider Transactions Over The Last Year

Notably, that recent purchase by John Terpu is the biggest insider purchase of Great Southern Mining shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$0.04. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Great Southern Mining share holders is that an insider was buying at near the current price. John Terpu was the only individual insider to buy shares in the last twelve months.

John Terpu purchased 10.80m shares over the year. The average price per share was AU$0.04. 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!

ASX:GSN Recent Insider Trading, March 18th 2020
ASX:GSN Recent Insider Trading, March 18th 2020

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).

Does Great Southern Mining Boast High Insider Ownership?

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. Great Southern Mining insiders own about AU$8.1m worth of shares (which is 61% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Great Southern Mining Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Great Southern Mining. One for the watchlist, at least! 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. For instance, we've identified 7 warning signs for Great Southern Mining (4 are a bit concerning) 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

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.

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