Insiders of DevEx Resources Getting Good Value On Their AU$3.85m Investment

Last week, DevEx Resources Limited (ASX:DEV) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 12% last week, resulting in a AU$14m increase in the company's market worth, implying a 31% gain on their initial purchase. As a result, the stock they originally bought for AU$3.85m is now worth AU$5.04m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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DevEx Resources Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Non-Executive Chairman Timothy Rupert Goyder for AU$3.6m worth of shares, at about AU$0.14 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.19. 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.

DevEx Resources insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for DevEx Resources

DevEx 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 DevEx Resources Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that DevEx Resources insiders own 24% of the company, worth about AU$33m. 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 Do The DevEx Resources Insider Transactions Indicate?

It doesn't really mean much that no insider has traded DevEx Resources shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in DevEx Resources and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 5 warning signs (2 shouldn't be ignored!) that you ought to be aware of before buying any shares in DevEx Resources.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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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