Syrah Resources Limited (ASX:SYR) shareholders (or potential shareholders) will be happy to see that insider Bruce Gray recently bought a whopping US$3.3m worth of stock, at a price of US$0.72. Not only is that a big swing, but it increased their holding size by 17.7%, which is definitely great to see.
Syrah Resources Insider Transactions Over The Last Year
In fact, the recent purchase by insider Bruce Gray was not their only acquisition of Syrah Resources shares this year. They previously made an even bigger purchase of AU$51m worth of shares at a price of AU$2.39 per share. That means that even when the share price was higher than AU$0.51 (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. To us, it's very important to consider the price insiders pay for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Syrah Resources insiders were buying shares, but not selling. Their average price was about AU$2.09. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Insider Ownership of Syrah Resources
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 8.0% of Syrah Resources shares, worth about AU$17m. 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 Syrah Resources Insiders?
The recent insider purchases are 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. Insiders likely see value in Syrah Resources shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Syrah Resources, you should check out this free report on analyst forecasts for the company.
Of course Syrah Resources 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.
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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. Thank you for reading.