Carbine Resources Loses AU$1.2m Market Value But Insiders See Windfall Of AU$376k
Insiders who bought Carbine Resources Limited (ASX:CRB) in the last 12 months may probably not pay attention to the stock's recent 10.0% drop. Reason being, despite the recent loss, insiders original purchase value of AU$395.0k is now worth AU$771.0k.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Carbine Resources Insider Transactions Over The Last Year
The insider Thomas Bahen made the biggest insider purchase in the last 12 months. That single transaction was for AU$210k worth of shares at a price of AU$0.01 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.009). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Carbine Resources insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around AU$0.0046. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Carbine Resources
Carbine Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Carbine Resources Have Bought Stock Recently
It's good to see that Carbine Resources insiders have made notable investments in the company's shares. insider Thomas Bahen spent AU$210k on stock, and there wasn't any selling. That shows some optimism about the company's future.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Carbine Resources insiders own 44% of the company, currently worth about AU$4.7m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Carbine Resources Tell Us?
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 we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Carbine Resources. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Carbine Resources. For example, Carbine Resources has 5 warning signs (and 4 which are concerning) we think you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.