Yahoo Finance Revolver Resources Holdings Gains 60%, Insider Trades Reap Benefit
Revolver Resources Holdings Ltd (ASX:RRR) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 60%, resulting in a AU$19m rise in the company's market capitalisation. In other words, the original AU$359k purchase is now worth AU$554k.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Revolver Resources Holdings
The Last 12 Months Of Insider Transactions At Revolver Resources Holdings
In fact, the recent purchase by Brian MacDonald was the biggest purchase of Revolver Resources Holdings shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (AU$0.20), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Revolver Resources Holdings insiders may have bought shares in the last year, but they didn't sell any. 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!
Revolver Resources Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Revolver Resources Holdings Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Revolver Resources Holdings. In total, insiders bought AU$359k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does Revolver Resources Holdings 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data isn't picking up on much insider ownership at Revolver Resources Holdings, though insiders do hold about AU$119k worth of shares. However, it's possible that insiders might have an indirect interest through a more complex structure. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
So What Does This Data Suggest About Revolver Resources Holdings Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Revolver Resources Holdings stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Revolver Resources Holdings. Every company has risks, and we've spotted 6 warning signs for Revolver Resources Holdings (of which 4 make us uncomfortable!) you should know about.
But note: Revolver Resources Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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.
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