Rokmaster Resources Gains 13%, Insider Trades Reap Benefit

Rokmaster Resources Corp. (CVE:RKR) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 13% resulting in a CA$994k addition to the company’s market value. As a result, their original purchase of CA$556.6k worth of stock is now worth CA$635.3k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Rokmaster Resources Insider Transactions Over The Last Year

In fact, the recent purchase by CEO & Director John Mirko was not their only acquisition of Rokmaster Resources shares this year. They previously made an even bigger purchase of CA$100k worth of shares at a price of CA$0.04 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.045. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

John Mirko bought a total of 14.12m shares over the year at an average price of CA$0.039. 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 Rokmaster Resources

Rokmaster Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Rokmaster Resources Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Rokmaster Resources insiders own 25% of the company, worth about CA$2.3m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Rokmaster 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. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Rokmaster Resources we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rokmaster Resources. You'd be interested to know, that we found 5 warning signs for Rokmaster Resources and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.