Trade Alert: Bryan Sheffield At Tamboran Resources Limited (ASX:TBN), Has Just Spent AU$20m Buying 4,347% More Shares

Tamboran Resources Limited (ASX:TBN) shareholders (or potential shareholders) will be happy to see that insider Bryan Sheffield recently bought a whopping AU$20m worth of stock, at a price of AU$0.37. That purchase boosted their holding by 4,347%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

See our latest analysis for Tamboran Resources

Tamboran Resources Insider Transactions Over The Last Year

In fact, the recent purchase by Bryan Sheffield was the biggest purchase of Tamboran Resources shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of AU$0.39 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Tamboran Resources insiders decided to buy shares at close to current prices.

While Tamboran Resources insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Tamboran Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. We usually like to see fairly high levels of insider ownership. It appears that Tamboran Resources insiders own 7.4% of the company, worth about AU$21m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Tamboran Resources Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Tamboran Resources insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 2 warning signs for Tamboran Resources (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing.

Of course Tamboran 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.

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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.