Yahoo Finance Sierra Rutile Holdings Insiders Enjoying US$445k Appreciation On US$2.15m Investment
Insiders who bought Sierra Rutile Holdings Limited (ASX:SRX) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$17m as a result of the stock's 51% gain over the same period. As a result, their original purchase of US$2.15m worth of stock is now worth US$2.60m.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Sierra Rutile Holdings
The Last 12 Months Of Insider Transactions At Sierra Rutile Holdings
In fact, the recent purchase by Craig Dean was the biggest purchase of Sierra Rutile Holdings shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (AU$0.12), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months insiders purchased 22.57m shares for AU$2.2m. But insiders sold 8.65m shares worth AU$658k. In total, Sierra Rutile Holdings insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Sierra Rutile Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Sierra Rutile Holdings Insiders Bought Stock Recently
At Sierra Rutile Holdings,over the last quarter, we have observed quite a lot more insider buying than insider selling. insider Craig Dean spent AU$2.1m on stock. On the other hand, insider Craig Dean netted AU$658k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Does Sierra Rutile Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Sierra Rutile Holdings insiders own 13% of the company, worth about AU$6.4m. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Sierra Rutile Holdings Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Sierra Rutile Holdings insiders are expecting a bright future. 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. To help with this, we've discovered 2 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Sierra Rutile Holdings.
Of course Sierra Rutile Holdings 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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
