Investors who take an interest in Yangarra Resources Ltd. (TSE:YGR) should definitely note that the Vice President of Operations, Lorne Simpson, recently paid CA$0.31 per share to buy CA$312k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 236%, potentially signalling some real optimism.
Yangarra Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Lorne Simpson is the biggest insider purchase of Yangarra Resources shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.39). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 2.13m shares worth CA$1.3m. On the other hand they divested 100000 shares, for CA$38k. Overall, Yangarra Resources insiders were net buyers last year. They paid about CA$0.60 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by 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!
Yangarra 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.
Does Yangarra Resources Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Yangarra Resources insiders own 13% of the company, worth about CA$4.4m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Yangarra Resources Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Yangarra Resources insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Yangarra Resources. To help with this, we've discovered 4 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Yangarra Resources.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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. Thank you for reading.