Potential Entrée Resources Ltd. (TSE:ETG) shareholders may wish to note that the President, Christopher Adams, recently bought CA$512k worth of stock, paying CA$2.90 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 252%, potentially signalling some real optimism.
Entrée Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Christopher Adams is the biggest insider purchase of Entrée Resources shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$2.63). 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 470.80k shares for CA$1.3m. But they sold 311.30k shares for CA$869k. Overall, Entrée Resources insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Entrée Resources
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Entrée Resources
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Entrée Resources insiders own about CA$13m worth of shares (which is 2.5% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Entrée Resources Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Entrée Resources we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 3 warning signs with Entrée Resources and understanding them should be part of your investment process.
But note: Entrée Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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