Cavalier Resources Reaches AU$26m Market Cap Benefiting Insider Stock Buying
Insiders who bought Cavalier Resources Ltd (ASX:CVR) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$3.4m as a result of the stock's 15% gain over the same period. As a result, the stock they originally bought for AU$99.7k is now worth AU$130.1k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Cavalier Resources Insider Transactions Over The Last Year
The insider Ross Johns 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$0.23 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.30. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Cavalier Resources
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Cavalier Resources
Many investors like to check how much of a company is owned by 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. Insiders own 23% of Cavalier Resources shares, worth about AU$5.8m. 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 Cavalier Resources Tell Us?
It doesn't really mean much that no insider has traded Cavalier Resources shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Cavalier Resources and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 5 warning signs for Cavalier Resources (3 are potentially serious!) and we strongly recommend you look at these before investing.
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.
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.