Multiple insiders secured a larger position in Globe Metals & Mining Limited (ASX:GBE) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company’s prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Globe Metals & Mining
The Last 12 Months Of Insider Transactions At Globe Metals & Mining
The Non-Executive Chairperson Alice Wong made the biggest insider purchase in the last 12 months. That single transaction was for AU$3.9m worth of shares at a price of AU$0.037 each. So it’s clear an insider wanted to buy, at around the current price, which is AU$0.04. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Globe Metals & Mining insiders decided to buy shares at close to current prices.
In the last twelve months Globe Metals & Mining insiders were buying shares, but not selling. 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!
Globe Metals & Mining is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
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. It’s great to see that Globe Metals & Mining insiders own 65% of the company, worth about AU$18m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Globe Metals & Mining Tell Us?
It doesn’t really mean much that no insider has traded Globe Metals & Mining shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Globe Metals & Mining insiders are reasonably well aligned (owning significant chunk of the company’s shares) and optimistic for the future. While it’s good to be aware of what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we’ve spotted 5 warning signs for Globe Metals & Mining (of which 2 shouldn’t be ignored!) you should know about.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
