Even if it's not a huge purchase, we think it was good to see that Samuel Duddy, a Freehill Mining Limited (ASX:FHS) insider, recently shelled out AU$74k to buy stock, at AU$0.027 per share. That might not be a big purchase but it only increased their holding by 1.4%, and could be interpreted as a good sign.
Freehill Mining Insider Transactions Over The Last Year
In fact, the recent purchase by insider Samuel Duddy was not their only acquisition of Freehill Mining shares this year. They previously made an even bigger purchase of AU$611k worth of shares at a price of AU$0.011 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.02. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Freehill Mining insiders bought shares last year, they didn't sell. Their average price was about AU$0.012. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share 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!
Freehill Mining 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 Freehill Mining
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 Freehill Mining insiders own 21% of the company, worth about AU$5.8m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Freehill Mining Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Freehill Mining shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Freehill Mining is showing 7 warning signs in our investment analysis, and 4 of those are significant...
Of course Freehill Mining 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.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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