Signature Resources President Acquires 5.5% More Stock
Even if it's not a huge purchase, we think it was good to see that John Denbow, the President of Signature Resources Ltd. (CVE:SGU) recently shelled out CA$100k to buy stock, at CA$0.04 per share. However, it only increased their shares held by 5.5%, and it wasn't a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Signature Resources
In fact, the recent purchase by President John Denbow was not their only acquisition of Signature Resources shares this year. They previously made an even bigger purchase of CA$350k worth of shares at a price of CA$0.055 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.035). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Signature Resources 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Signature Resources
Signature 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.
Does Signature Resources Boast High 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. Signature Resources insiders own 47% of the company, currently worth about CA$4.0m 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.
So What Do The Signature Resources Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Signature Resources. Looks promising! 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. You'd be interested to know, that we found 5 warning signs for Signature Resources and we suggest you have a look.
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.
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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.