Industrial Minerals Insider Purchases Yet To Pay Off Regardless Of Recent Strength

Simply Wall St · 3d ago

Insiders who bought AU$383.6k worth of Industrial Minerals Ltd (ASX:IND) stock in the last year have seen some of their losses recouped as the stock gained 14% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at AU$56k since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

We've discovered 6 warning signs about Industrial Minerals. View them for free.

The Last 12 Months Of Insider Transactions At Industrial Minerals

Over the last year, we can see that the biggest insider purchase was by Non-Executive Chairman Ashley Pattison for AU$119k worth of shares, at about AU$0.17 per share. That means that even when the share price was higher than AU$0.16 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.

While Industrial Minerals insiders bought shares during the last year, they didn't sell. Their average price was about AU$0.19. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

View our latest analysis for Industrial Minerals

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ASX:IND Insider Trading Volume April 16th 2025

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Industrial Minerals insiders own about AU$4.6m worth of shares. That equates to 36% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Industrial Minerals Insiders?

It doesn't really mean much that no insider has traded Industrial Minerals shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Industrial Minerals insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Industrial Minerals has 6 warning signs (and 5 which are concerning) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.