Trade Alert: The Independent Non-Executive Chairman Of DiscovEx Resources Limited (ASX:DCX), Heath Hellewell, Has Just Spent AU$100k Buying 45% More Shares

Even if it's not a huge purchase, we think it was good to see that Heath Hellewell, the Independent Non-Executive Chairman of DiscovEx Resources Limited (ASX:DCX) recently shelled out AU$100k to buy stock, at AU$0.0025 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 45%.

Check out our latest analysis for DiscovEx Resources

DiscovEx Resources Insider Transactions Over The Last Year

Notably, that recent purchase by Heath Hellewell is the biggest insider purchase of DiscovEx Resources shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of AU$0.0035. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While DiscovEx Resources insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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 12% of DiscovEx Resources shares, worth about AU$1.4m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At DiscovEx Resources Tell Us?

It is good to see recent purchasing. 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that DiscovEx Resources insiders are expecting a bright future. 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. Every company has risks, and we've spotted 6 warning signs for DiscovEx Resources (of which 5 are a bit unpleasant!) you should know about.

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.

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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.

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