Investors who take an interest in Red Moon Resources Inc. (CVE:RMK) should definitely note that the Independent Director, John Anderson, recently paid CA$1.26 per share to buy CA$126k worth of the stock. That’s a very solid buy in our book, and increased their holding by a noteworthy 27%.
Check out our latest analysis for Red Moon Resources
Red Moon Resources Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the CEO & Director, Patrick Laracy, sold CA$400k worth of shares at a price of CA$0.40 per share. So it’s clear an insider wanted to take some cash off the table, even below the current price of CA$1.20. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. This single sale was just 24% of Patrick Laracy’s stake. Patrick Laracy was the only individual insider to sell over the last year.
Happily, we note that in the last year insiders paid CA$404k for 847.14k shares. But they sold 1.00m shares for CA$400k. In total, Red Moon Resources insiders bought more than they sold over the last year. Their average price was about CA$0.48. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today’s levels. 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!
TSXV:RMK Insider Trading Volume July 8th 2021
Red Moon Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 6.1% of Red Moon Resources shares, worth about CA$5.4m, according to our data. Whilst better than nothing, we’re not overly impressed by these holdings.
What Might The Insider Transactions At Red Moon Resources Tell Us?
It’s certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Red Moon Resources insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Case in point: We’ve spotted 4 warning signs for Red Moon Resources you should be aware of, and 1 of them shouldn’t be ignored.
Of course Red Moon 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.
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