Potential Vanadium Resources Limited (ASX:VR8) shareholders may wish to note that insider Faldi Ismail recently bought AU$142k worth of stock, paying AU$0.069 for each share. That’s a very solid buy in our book, and increased their holding by a noteworthy 10%.
Vanadium Resources Insider Transactions Over The Last Year
In fact, the recent purchase by Faldi Ismail was the biggest purchase of Vanadium Resources shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of AU$0.066. 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Faldi Ismail was the only individual insider to buy shares in the last twelve months.
Faldi Ismail purchased 3.06m shares over the year. The average price per share was AU$0.065. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. I reckon it’s a good sign if insiders own a significant number of shares in the company. Vanadium Resources insiders own about AU$11m worth of shares. That equates to 37% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Do The Vanadium Resources Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Vanadium Resources shares, given these transactions (along with notable insider ownership of the company). While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Vanadium Resources has 4 warning signs (and 1 which shouldn’t be ignored) we think you should know about.
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