Whilst it may not be a huge deal, we thought it was good to see that the Riedel Resources Limited (ASX:RIE) Non-Executive Chairperson, Michael Bohm, recently bought AU$61k worth of stock, for AU$0.005 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 49%.

Check out our latest analysis for Riedel Resources

The Last 12 Months Of Insider Transactions At Riedel Resources

In fact, the recent purchase by Michael Bohm was the biggest purchase of Riedel Resources shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of AU$0.009. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Riedel Resources insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around AU$0.0065. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price of AU$0.009. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

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. 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 Riedel Resources insiders own 16% of the company, worth about AU$2.0m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Riedel Resources Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Riedel Resources shares, given these transactions (along with notable insider ownership of the company). 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 that end, you should learn about the 6 warning signs we've spotted with Riedel Resources (including 5 which are a bit unpleasant).

Of course Riedel Resources may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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.

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