Insiders In Lion Rock Minerals Still Down 49% On AU$3.46m Investment
Insiders who purchased AU$3.46m worth of Lion Rock Minerals Ltd (ASX:LRM) shares over the past year recouped some of their losses after price gained 25% last week. However, total losses seen by insiders are still AU$1.7m since the time of purchase.
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.
Lion Rock Minerals Insider Transactions Over The Last Year
The insider Antonius Smit made the biggest insider purchase in the last 12 months. That single transaction was for AU$2.9m worth of shares at a price of AU$0.049 each. That means that an insider was happy to buy shares at above the current price of AU$0.02. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid AU$3.5m for 88.87m shares. But insiders sold 28.48m shares worth AU$847k. Overall, Lion Rock Minerals insiders were net buyers during the last year. Their average price was about AU$0.039. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
View our latest analysis for Lion Rock Minerals
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).
Insiders At Lion Rock Minerals Have Sold Stock Recently
The last quarter saw substantial insider selling of Lion Rock Minerals shares. In total, insider Jason Peterson sold AU$847k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Lion Rock Minerals insiders own about AU$27m worth of shares. That equates to 37% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Lion Rock Minerals Insiders?
An insider sold Lion Rock Minerals shares recently, but they didn't buy any. But we take heart from prior transactions. It's good to see insiders are shareholders. So we're happy enough to look past some selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lion Rock Minerals. Case in point: We've spotted 7 warning signs for Lion Rock Minerals you should be aware of, and 3 of these are significant.
Of course Lion Rock Minerals 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.
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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.