Have Insiders Been Buying Rockridge Resources Ltd. (CVE:ROCK) Shares This Year?

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Rockridge Resources Ltd. (CVE:ROCK).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for Rockridge Resources

The Last 12 Months Of Insider Transactions At Rockridge Resources

While no particular insider transaction stood out, we can still look at the overall trading.

Happily, we note that in the last year insiders paid CA$120k for 869.50k shares. But they sold 300000 shares for CA$40k. In total, Rockridge Resources insiders bought more than they sold over the last year. Their average price was about CA$0.14. These transactions suggest that insiders have considered the current price of CA$0.10 attractive. 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!

Rockridge 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.

Have Rockridge Resources Insiders Traded Recently?

We've only seen a tiny insider purchase valued at CA$260, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.

Insider Ownership of Rockridge Resources

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Rockridge Resources insiders own 10% of the company, worth about CA$349k. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Rockridge Resources Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Rockridge Resources insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rockridge Resources. To help with this, we've discovered 6 warning signs (4 are potentially serious!) that you ought to be aware of before buying any shares in Rockridge Resources.

Of course Rockridge 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.

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.

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.