We note that the Southern Palladium Limited (ASX:SPD) Independent Non-Executive Director, Lindiwe Nkosi-Thomas, recently sold AU$86k worth of stock for AU$1.41 per share. It might not be a huge sale, but it did reduce their holding size 14%, hardly encouraging.
The Last 12 Months Of Insider Transactions At Southern Palladium
In the last twelve months, the biggest single purchase by an insider was when insider Robert Keith bought AU$4.6m worth of shares at a price of AU$0.50 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$1.46), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.
In the last twelve months insiders purchased 14.83m shares for AU$10m. On the other hand they divested 61.00k shares, for AU$86k. In the last twelve months there was more buying than selling by Southern Palladium insiders. Their average price was about AU$0.68. 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. 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.
Does Southern Palladium Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Southern Palladium insiders own about AU$42m worth of shares. That equates to 22% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Southern Palladium Tell Us?
Insider selling has just outweighed insider buying in the last three months. But the net divestment is not enough to concern us at all. On a brighter note, the transactions over the last year are encouraging. Overall we don’t see anything to make us think Southern Palladium insiders are doubting the company, and they do own shares. 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 4 warning signs we’ve spotted with Southern Palladium (including 3 which are a bit concerning).
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.