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From what we can see, insiders were net buyers in Carnavale Resources Limited's (ASX:CAV ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Carnavale Resources Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Phillip Coulson bought AU$271k worth of shares at a price of AU$0.009 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.007). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Phillip Coulson.
Phillip Coulson bought 58.00m shares over the last 12 months at an average price of AU$0.008. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Carnavale Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Carnavale 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. We usually like to see fairly high levels of insider ownership. Insiders own 37% of Carnavale Resources shares, worth about AU$6.1m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Carnavale Resources Tell Us?
It doesn't really mean much that no insider has traded Carnavale Resources shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Carnavale Resources and we see no evidence to suggest they are worried about the future. 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 instance, we've identified 5 warning signs for Carnavale Resources (1 is significant) you should be aware of.
Of course Carnavale Resources 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, but not derivative transactions.
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.
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