Yahoo Finance Resource Base Insider Confidence Rewarded, Stock Hits AU$11m Market Cap
Resource Base Limited (ASX:RBX) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 13%, resulting in a AU$1.2m rise in the company's market capitalisation, translating to a gain of 73% on their initial investment. As a result, the stock they originally bought for AU$150.0k is now worth AU$260.0k.
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.
View our latest analysis for Resource Base
The Last 12 Months Of Insider Transactions At Resource Base
The Non-Executive Chairman Maurice Feilich 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$0.075 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.13. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Resource Base insiders were buying shares, but not selling. 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!
Resource Base is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Resource Base 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. From our data, it seems that Resource Base insiders own 14% of the company, worth about AU$1.5m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Resource Base Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Resource Base shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Resource Base insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Resource Base. To help with this, we've discovered 6 warning signs (4 are potentially serious!) that you ought to be aware of before buying any shares in Resource Base.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
