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Michael Ruane Is The Executive Director of Reward Minerals Limited (ASX:RWD) And They Just Picked Up 2.2% More Shares

Even if it's not a huge purchase, we think it was good to see that Michael Ruane, the Executive Director of Reward Minerals Limited (ASX:RWD) recently shelled out AU$69k to buy stock, at AU$0.14 per share. Although the purchase is not a big one, increasing their shareholding by only 2.2%, it can be interpreted as a good sign.

View our latest analysis for Reward Minerals

Reward Minerals Insider Transactions Over The Last Year

In fact, the recent purchase by Executive Director Michael Ruane was not their only acquisition of Reward Minerals shares this year. Earlier in the year, they paid AU$0.14 per share in a AU$434k purchase. That means that even when the share price was higher than AU$0.14 (the recent price), an insider wanted to purchase shares. 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. 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. We note that Michael Ruane was also the biggest seller.

In the last twelve months insiders purchased 4.14m shares for AU$590k. But insiders sold 3.06m shares worth AU$430k. In the last twelve months there was more buying than selling by Reward Minerals insiders. 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!

insider-trading-volume
insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Reward Minerals

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Reward Minerals insiders own 19% of the company, worth about AU$5.2m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Reward Minerals Insiders?

It's certainly positive to see the recent insider purchase. 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. Insiders likely see value in Reward Minerals shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 5 warning signs for Reward Minerals (2 shouldn't be ignored!) that we believe deserve your full attention.

Of course Reward Minerals may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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 (at) simplywallst.com.

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