Yahoo Finance Solaris Resources Inc. (TSE:SLS) insiders have a reason to boast after seeing a US$107m addition to their US$114m investment
Solaris Resources Inc. (TSE:SLS) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 7.9%, resulting in a CA$104m rise in the company's market capitalisation. As a result, their original purchase of US$114m worth of stock is now worth US$221m.
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.
View our latest analysis for Solaris Resources
The Last 12 Months Of Insider Transactions At Solaris Resources
Over the last year, we can see that the biggest insider purchase was by Executive Chairman Richard Warke for CA$58m worth of shares, at about CA$8.25 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$13.13), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid CA$114m for 16.86m shares. But they sold 293.80k shares for CA$2.0m. In total, Solaris Resources insiders bought more than they sold over the last year. They paid about CA$6.78 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Solaris Resources 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.
Solaris Resources Insiders Bought Stock Recently
Over the last quarter, Solaris Resources insiders have spent a meaningful amount on shares. In total, insiders bought CA$5.8m worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Does Solaris Resources Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Solaris Resources insiders own 41% of the company, currently worth about CA$589m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Solaris Resources Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Solaris Resources. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Solaris Resources. Every company has risks, and we've spotted 3 warning signs for Solaris Resources (of which 1 can't be ignored!) you should know about.
But note: Solaris Resources 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.
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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