It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Shree Minerals Limited (ASX:SHH). What Is Insider Buying? It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information. We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'. Check out our latest analysis for Shree Minerals The Last 12 Months Of Insider Transactions At Shree Minerals The Non-Executive Director Davide Bosio made the biggest insider purchase in the last 12 months. That single transaction was for AU$200k worth of shares at a price of AU$0.006 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.013), 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. While Shree Minerals insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction! ASX:SHH Insider Trading Volume November 9th 2020 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. Insiders at Shree Minerals Have Bought Stock Recently Over the last quarter, Shree Minerals insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought AU$250k worth of shares. That shows some optimism about the company's future. Insider Ownership Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Shree Minerals insiders own 14% of the company, worth about AU$1.5m. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing! What Might The Insider Transactions At Shree Minerals Tell Us? It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Shree Minerals insiders are expecting a bright future.
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Mkt cap ! $3.715M | |||
| Open | High | Low | Value | Volume |
| 0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 18 | 22188677 | 0.2¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 0.3¢ | 7029051 | 11 |
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