Potential DevEx Resources Limited (ASX:DEV) shareholders may wish to note that the Non-Executive Chairman, Timothy Rupert Goyder, recently bought AU$149k worth of stock, paying AU$0.11 for each share. Although the purchase only increased their holding by 1.7%, it is still a solid purchase in our view.

View our latest analysis for DevEx Resources

DevEx Resources Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Graham Kluck bought AU$2.2m worth of shares at a price of AU$0.33 per share. That means that even when the share price was higher than AU$0.13 (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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

DevEx Resources insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.28 on average. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

DevEx Resources 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 DevEx Resources

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. DevEx Resources insiders own about AU$17m worth of shares. That equates to 29% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At DevEx Resources Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in DevEx Resources shares, given these transactions (along with notable insider ownership of the company). 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, DevEx Resources has 4 warning signs (and 2 which are concerning) we think you should know about.