Whilst it may not be a huge deal, we thought it was good to see that the Carnaby Resources Limited (ASX:CNB) Non-Executive Director, Justin Tremain, recently bought AU$74k worth of stock, for AU$0.10 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 36%.
Carnaby Resources Insider Transactions Over The Last Year
In fact, the recent purchase by Justin Tremain was the biggest purchase of Carnaby 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 around the current price of AU$0.11. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Justin Tremain. Notably Justin Tremain was also the biggest seller.
Justin Tremain bought a total of 1275000 shares over the year at an average price of AU$0.11. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Carnaby Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 21% of Carnaby Resources shares, worth about AU$2.2m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Carnaby Resources Tell Us?
We can't make any useful conclusions about recent trading, since insider buying and selling has been balanced. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Carnaby Resources insiders are doubting the company, and they do own shares. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
But note: Carnaby 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.
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.
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. Thank you for reading.