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華爾街日報One West African Resources Insider Raised Their Stake In The Previous Year
Insiders were net buyers of West African Resources Limited's (ASX:WAF ) stock during the past year. That is, insiders bought more stock than they sold.
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.
West African Resources Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Tony Poli bought AU$73m worth of shares at a price of AU$1.15 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$3.06), we still think insider buying is a positive. 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.
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!
See our latest analysis for West African Resources
West African 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.
Insiders At West African Resources Have Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at West African Resources. In total, insider Tony Poli bought AU$73m worth of shares in that time. But COO & Executive Director Lyndon Hopkins sold shares worth AU$3.4m. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that West African Resources insiders own 6.8% of the company, worth about AU$238m. 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 Do The West African Resources Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about West African Resources. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing West African Resources. Every company has risks, and we've spotted 2 warning signs for West African Resources you should know about.
But note: West African Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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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.