Yahoo Finance Have Insiders Been Buying Turquoise Hill Resources Ltd. (TSE:TRQ) Shares?
We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Turquoise Hill Resources Ltd. (TSE:TRQ), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for Turquoise Hill Resources
The Last 12 Months Of Insider Transactions At Turquoise Hill Resources
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Ulf Quellmann bought CA$112k worth of shares at a price of CA$0.65 per share. That means that an insider was happy to buy shares at above the current price of CA$0.55. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders bought 222k shares for a total of CA$231k. Turquoise Hill Resources insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around CA$1.04. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by 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!
Turquoise Hill Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Turquoise Hill Resources Insiders Bought Stock Recently
Over the last quarter, Turquoise Hill Resources insiders have spent a meaningful amount on shares. Specifically, Ulf Quellmann bought US$112k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Insider Ownership of Turquoise Hill Resources
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From what we can see in our data, insiders own only about CA$189k worth of Turquoise Hill Resources shares. We might be missing something but that seems like very low insider ownership.
What Might The Insider Transactions At Turquoise Hill Resources Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Turquoise Hill Resources insiders are expecting a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
