Firebird Metals Insiders May Regret Not Buying More, Market Cap Hits AU$30m
Firebird Metals Limited (ASX:FRB) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 22% resulting in a AU$5.5m addition to the company’s market value. As a result, the stock they originally bought for AU$353.4k is now worth AU$398.0k.
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.
Firebird Metals Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Evan Alexander Cranston bought AU$163k worth of shares at a price of AU$0.15 per share. That means that an insider was happy to buy shares at around the current price of AU$0.17. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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 Firebird Metals insiders decided to buy shares at close to current prices.
In the last twelve months Firebird Metals insiders were buying shares, but not selling. 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 Firebird Metals
Firebird Metals 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
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Firebird Metals insiders own 22% of the company, worth about AU$6.6m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Firebird Metals Tell Us?
It doesn't really mean much that no insider has traded Firebird Metals shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Firebird Metals and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Firebird Metals is showing 6 warning signs in our investment analysis, and 3 of those make us uncomfortable...
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.