Even if it's not a huge purchase, we think it was good to see that Peter Smith, the Executive Chairman & MD of Truscott Mining Corporation Limited (ASX:TRM) recently shelled out AU$80k to buy stock, at AU$4.78 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

View our latest analysis for Truscott Mining

The Last 12 Months Of Insider Transactions At Truscott Mining

Notably, that recent purchase by Peter Smith is the biggest insider purchase of Truscott Mining 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 AU$0.06). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Peter Smith was the only individual insider to buy shares in the last twelve months.

Peter Smith bought 2.98m shares over the last 12 months at an average price of AU$0.085. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Truscott Mining is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Truscott Mining

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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's great to see that Truscott Mining insiders own 66% of the company, worth about AU$7.3m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Truscott Mining Insiders?

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. When combined with notable insider ownership, these factors suggest Truscott Mining insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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. For example, Truscott Mining has 5 warning signs (and 4 which are significant) we think you should know about.