Multiple insiders secured a larger position in Polymetals Resources Ltd (ASX:POL) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Polymetals Resources

Polymetals Resources Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman David Sproule bought AU$1.4m worth of shares at a price of AU$0.28 per share. That means that even when the share price was higher than AU$0.24 (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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Polymetals Resources insiders may have bought shares in the last year, but they didn't sell any. 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!

Polymetals Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Polymetals Resources Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Polymetals Resources. We can see that Executive Chairman David Sproule paid AU$1.4m for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.

Does Polymetals Resources Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Polymetals Resources insiders own 45% of the company, worth about AU$21m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Polymetals Resources Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Polymetals Resources insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. Be aware that Polymetals Resources is showing 5 warning signs in our investment analysis, and 2 of those are a bit concerning...