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$120k to buy stock, at AU$0.06 per share. However, it only increased their shares held by 3.1%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Truscott Mining

Truscott Mining Insider Transactions Over The Last Year

Notably, that recent purchase by Peter Smith is the biggest insider purchase of Truscott Mining shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.07. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Peter Smith bought a total of 5.01m shares over the year at an average price of AU$0.059. 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!

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

For a common shareholder, it is worth checking how many shares are held by company 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. Truscott Mining insiders own about AU$8.6m worth of shares (which is 64% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Truscott Mining Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Truscott Mining. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Truscott Mining. When we did our research, we found 5 warning signs for Truscott Mining (4 are potentially serious!) that we believe deserve your full attention.

Of course Truscott Mining may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.

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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.