The Executive Director & Commercial Director of Sheffield Resources Limited (ASX:SFX), Bruce Griffin, Just Bought A Few More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Sheffield Resources Limited (ASX:SFX) Executive Director & Commercial Director, Bruce Griffin, recently bought AU$61k worth of stock, for AU$0.30 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
View our latest analysis for Sheffield Resources
The Last 12 Months Of Insider Transactions At Sheffield Resources
Notably, that recent purchase by Bruce Griffin is the biggest insider purchase of Sheffield Resources shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$0.30. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Sheffield Resources insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$0.35. These transactions suggest that insiders have considered the current price of AU$0.30 attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Sheffield Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Sheffield Resources Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Sheffield Resources insiders own about AU$23m worth of shares. That equates to 22% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Sheffield Resources Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Sheffield Resources we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 5 warning signs for Sheffield Resources you should be aware of, and 2 of these are significant.
Of course Sheffield Resources may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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. 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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