Bullish Southern Palladium Insiders Rewarded As Their Investment Rises To AU$8.49m
Last week, Southern Palladium Limited (ASX:SPD) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 10.0% last week, resulting in a AU$24m increase in the company's market worth, implying a 79% gain on their initial purchase. As a result, the stock they originally bought for AU$4.73m is now worth AU$8.49m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Southern Palladium Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Robert Keith for AU$2.9m worth of shares, at about AU$1.10 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$1.98), we still think insider buying is a positive. 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.
Over the last year, we can see that insiders have bought 4.29m shares worth AU$4.7m. But insiders sold 67.84k shares worth AU$100k. Overall, Southern Palladium insiders were net buyers during the last year. 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!
See our latest analysis for Southern Palladium
Southern Palladium 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 Southern Palladium Have Sold Stock Recently
We have seen a bit of insider selling at Southern Palladium, over the last three months. Independent Non-Executive Director Robert Thomson sold just AU$14k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.
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. Southern Palladium insiders own about AU$57m worth of shares. That equates to 22% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Southern Palladium Insider Transactions Indicate?
Our data shows a little more insider selling, but no insider buying, in the last three months. However, the sales are not big enough to concern us at all. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Southern Palladium and their transactions don't cause us concern. 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. To that end, you should learn about the 4 warning signs we've spotted with Southern Palladium (including 2 which are potentially serious).
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.