Whilst it may not be a huge deal, we thought it was good to see that the Calidus Resources Limited (ASX:CAI) MD & Director, David Russell Reeves, recently bought AU$77k worth of stock, for AU$0.21 per share. That might not be a big purchase but it only increased their holding by 2.3%, and could be interpreted as a good sign.
Calidus Resources Insider Transactions Over The Last Year
Notably, that recent purchase by David Russell Reeves is the biggest insider purchase of Calidus Resources shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$0.22. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Calidus Resources insider decided to buy shares at close to current prices. David Russell Reeves was the only individual insider to buy over the year.
David Russell Reeves purchased 565.37k shares over the year. The average price per share was AU$0.24. 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!
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.
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. Our data indicates that Calidus Resources insiders own about AU$5.1m worth of shares (which is 11% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Calidus Resources Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Calidus Resources stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 5 warning signs we've spotted with Calidus Resources (including 1 which can't be ignored).
But note: Calidus 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.
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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