Resource Minerals International Executive Chairman Acquires 4.6% More Stock

Potential Resource Minerals International Ltd (ASX:RMI) shareholders may wish to note that the Executive Chairman, Asimwe Matungwa Kabunga, recently bought AU$299k worth of stock, paying AU$0.04 for each share. Although the purchase only increased their holding by 4.6%, it is still a solid purchase in our view.

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Resource Minerals International Insider Transactions Over The Last Year

In fact, the recent purchase by Executive Chairman Asimwe Matungwa Kabunga was not their only acquisition of Resource Minerals International shares this year. Earlier in the year, they paid AU$0.021 per share in a AU$500k purchase. Even though the purchase was made at a significantly lower price than the recent price (AU$0.18), 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 Resource Minerals International insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.025. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Resource Minerals International

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Insider Ownership Of Resource Minerals International

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Resource Minerals International insiders own 35% of the company, worth about AU$59m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Resource Minerals International Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Resource Minerals International insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Resource Minerals International has 4 warning signs (and 2 which make us uncomfortable) we think you should know about.

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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.