Even if it's not a huge purchase, we think it was good to see that Joanne Warner, the Independent Non Executive Director of Deterra Royalties Limited (ASX:DRR) recently shelled out AU$79k to buy stock, at AU$3.95 per share. While that isn't the hugest buy, it actually boosted their shareholding by 87%, which is good to see.
Deterra Royalties Insider Transactions Over The Last Year
The Independent Non Executive Director Graeme Devlin made the biggest insider purchase in the last 12 months. That single transaction was for AU$158k worth of shares at a price of AU$3.95 each. That means that an insider was happy to buy shares at above the current price of AU$3.86. 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. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Deterra Royalties insiders may have bought shares in the last year, but they didn't sell any. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. Our data isn't picking up on much insider ownership at Deterra Royalties, though insiders do hold about AU$1.1m worth of shares. We might be missing something but that seems like very low insider ownership.
So What Do The Deterra Royalties Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Deterra Royalties insiders are reasonably well aligned, and optimistic for the future. 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. Be aware that Deterra Royalties is showing 3 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...
Of course Deterra Royalties 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. 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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