Insiders Buying Yugo Metals Might Wish They Invested More, Stock Gains 15%
Yugo Metals Limited (ASX:YUG) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 15%, resulting in a AU$2.6m rise in the company's market capitalisation, translating to a gain of 207% on their initial investment. As a result, their original purchase of AU$179.0k worth of stock is now worth AU$549.8k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Yugo Metals Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Jason Peterson bought AU$124k worth of shares at a price of AU$0.045 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.062. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Jason Peterson bought a total of 8.87m shares over the year at an average price of AU$0.02. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Yugo Metals
Yugo Metals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Yugo Metals
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Yugo Metals insiders own 27% of the company, worth about AU$5.4m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Yugo Metals Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Yugo Metals insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 5 warning signs (3 can't be ignored!) that you ought to be aware of before buying any shares in Yugo Metals.
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.