Stephen Layton Is The Non-Executive Director of Mithril Resources Limited (ASX:MTH) And They Just Picked Up 7.7% More Shares

·3 min read

Whilst it may not be a huge deal, we thought it was good to see that the Mithril Resources Limited (ASX:MTH) Non-Executive Director, Stephen Layton, recently bought AU$100k worth of stock, for AU$0.01 per share. Although the purchase is not a big one, increasing their shareholding by only 7.7%, it can be interpreted as a good sign.

See our latest analysis for Mithril Resources

Mithril Resources Insider Transactions Over The Last Year

Notably, that recent purchase by Stephen Layton is the biggest insider purchase of Mithril Resources shares that we've seen in the last year. That means that even when the share price was higher than AU$0.005 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Stephen Layton was the only individual insider to buy shares in the last twelve months.

Stephen Layton bought 25.00m shares over the last 12 months at an average price of AU$0.011. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

Mithril Resources is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Mithril Resources

For a common shareholder, it is worth checking how many shares are held by company 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. It appears that Mithril Resources insiders own 29% of the company, worth about AU$4.2m. 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 Do The Mithril Resources Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Mithril Resources shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 6 warning signs (3 shouldn't be ignored!) that you ought to be aware of before buying any shares in Mithril Resources.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting