Insider Buys Additional AU$149k In Dateline Resources Stock

Investors who take an interest in Dateline Resources Limited (ASX:DTR) should definitely note that the Independent Non-Executive Director, Phillips Baker, recently paid AU$0.31 per share to buy AU$149k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

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The Last 12 Months Of Insider Transactions At Dateline Resources

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director George Brack bought AU$202k worth of shares at a price of AU$0.31 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.13). 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. 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.

While Dateline Resources insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.25. These transactions suggest that insiders have considered the current price attractive. 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!

See our latest analysis for Dateline Resources

Dateline Resources is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

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. We usually like to see fairly high levels of insider ownership. Dateline Resources insiders own about AU$154m worth of shares (which is 30% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Dateline Resources Insiders?

It's certainly positive to see the recent insider purchase. 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Dateline Resources. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dateline Resources. Our analysis shows 4 warning signs for Dateline Resources (3 are concerning!) and we strongly recommend you look at these before investing.

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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.