TechGen Metals Ltd (ASX:TG1) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 13% resulting in a AU$1.4m addition to the company’s market value. As a result, the stock they originally bought for AU$310.7k is now worth AU$408.4k.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The MD & Director Ashley Hood made the biggest insider purchase in the last 12 months. That single transaction was for AU$100k worth of shares at a price of AU$0.018 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.027. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
TechGen Metals insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.021 on average. To my mind it is good 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. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for TechGen Metals
TechGen Metals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
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. From our data, it seems that TechGen Metals insiders own 11% of the company, worth about AU$1.4m. 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!
The fact that there have been no TechGen Metals insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more TechGen Metals stock. While it's good to be aware of 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. In terms of investment risks, we've identified 5 warning signs with TechGen Metals and understanding them should be part of your investment process.
Of course TechGen Metals 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.