Executive Chairman of Fenix Resources Picks Up 1.1% More Stock

Even if it's not a huge purchase, we think it was good to see that John Welborn, the Executive Chairman of Fenix Resources Limited (ASX:FEX) recently shelled out AU$120k to buy stock, at AU$0.48 per share. Although the purchase is not a big one, increasing their shareholding by only 1.1%, it can be interpreted as a good sign.

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Fenix Resources Insider Transactions Over The Last Year

Notably, that recent purchase by Executive Chairman John Welborn was not the only time they bought Fenix Resources shares this year. Earlier in the year, they paid AU$0.34 per share in a AU$223k purchase. Even though the purchase was made at a significantly lower price than the recent price (AU$0.48), 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.

John Welborn purchased 2.25m shares over the year. The average price per share was AU$0.39. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Fenix Resources

Fenix 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 Fenix 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Fenix Resources insiders own about AU$63m worth of shares. That equates to 17% 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 Do The Fenix Resources Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Insiders likely see value in Fenix Resources shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Fenix Resources.

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.