Investors who take an interest in Salt Lake Potash Limited (ASX:SO4) should definitely note that the MD, CEO & Director, Tony Swiericzuk, recently paid AU$0.71 per share to buy AU$303k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 35%.
The Last 12 Months Of Insider Transactions At Salt Lake Potash
Notably, that recent purchase by Tony Swiericzuk is the biggest insider purchase of Salt Lake Potash shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$0.65. 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 always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Salt Lake Potash insiders may have bought shares in the last year, but they didn't sell any. 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!
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.
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 14% of Salt Lake Potash shares, worth about AU$26m. 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 Salt Lake Potash Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Salt Lake Potash insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in Salt Lake Potash, you should check out this free report on analyst forecasts for the company.
But note: Salt Lake Potash 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.
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.
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