Trade alert: Tony Poli at Red Hill Iron Limited (ASX: RHI), just spent AU $ 3.0million to buy 5.4% more shares
Those who follow with Red Hill Iron Limited (ASX: RHI) will no doubt be intrigued by the recent share purchase by insider Tony Poli, who spent AU $ 3.0 million on shares at an average price of AU $ 4.00. It is undeniable that a purchase of this magnitude suggests conviction for a better future, although we note that proportionally this only increased their stake by 5.4%.
See our latest review for Red Hill Iron
The Last 12 Months of Insider Trading at Red Hill Iron
Notably, this recent purchase by Tony Poli is the biggest insider buy of Red Hill Iron shares we’ve seen in the past year. This means that an insider was happy to buy shares around the current price of AU $ 4.41. This means that they have been optimistic about the company in the past, even though they may have changed their minds. We always love to see insider buys, but it should be noted if those buys were made at a price much lower than today’s share price as the discount to value may have been reduced with increasing price. Fortunately, Red Hill Iron insiders have decided to buy shares at prices close to current prices.
Over the past twelve months, Red Hill Iron insiders have been buying stocks, but not selling them. The average purchase price was around AU $ 2.37. In my opinion, it is good that some insiders have invested their own money in the business. However, you should keep in mind that they bought when the stock price was significantly below today’s levels. Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. If you want to know exactly who sold, for how much and when, just click on the graph below!
There are many other companies that have insiders who buy stocks. You probably do not want to miss it free list of growing companies that insiders buy.
Red Hill Iron Insider Property
For an ordinary shareholder, it is worth checking out how many shares are owned by company insiders. Strong insider ownership often makes company management more concerned with the interests of shareholders. It’s great to see that Red Hill Iron insiders own 69% of the company, worth around A $ 181 million. I like to see this level of insider ownership because it increases the chances that management is thinking in the best interests of shareholders.
So what do Red Hill Iron’s insider trading indicate?
Recent insider buying is encouraging. And longer-term insider trading gives us confidence as well. But on the other hand, the company has made a loss in the last year, which makes us a little cautious. Besides the high number of insiders, this analysis suggests that insiders are quite optimistic about Red Hill Iron. Attractive! While we love to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. Our analysis shows 4 warning signs for Red Hill Iron (3 don’t sit down too well with us!) And we strongly recommend that you watch them before investing.
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For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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