Insiders at Tamboran Resources (ASX: TBN) who acquired a total of US$927.9k worth of shares over the past 12 months at an average price of US$0.31 are now facing a 10% decline in the stock price. As a result, their investment, which was initially worth US$927.9k, is now valued at only US$531.6k, leading to significant losses.
While insider transactions aren’t the most crucial factor in long-term investment decisions, they still provide some insights. Generally, if insiders are buying shares, it can indicate confidence in the company’s future prospects. In this case, despite the recent price drop, the insider purchases may still reflect optimism about the company’s future performance.
Key Insider Transactions
The most notable insider purchase in the last year occurred when Independent Non-Executive Director Ryan Dalton bought AU$450k worth of shares at a price of AU$35.97 per share. Given that the current share price is AU$0.17, this could indicate that insiders still had confidence in the company’s potential at a higher price. Dalton’s purchase suggests that insiders have faith in Tamboran’s future, even at the previous price levels.
Insider Ownership
Tamboran Resources insiders currently hold 15% of the company, which is worth around AU$74 million. This ownership level, though not among the highest, indicates a certain alignment between insiders and shareholders, as they have a vested interest in the company’s performance.
What Do the Insider Transactions Tell Us?
The absence of recent insider sales doesn’t raise any red flags, and the fact that insiders bought shares in the past year suggests that they still see potential in Tamboran. However, the 10% price decline may indicate that the stock is experiencing challenges or broader market volatility. Insiders owning a significant portion of shares also reflects their commitment to the company’s success.
It’s important to note that there are some risks involved in investing in Tamboran Resources, as the company has 4 warning signs, including 3 that could be concerning. While insider activity is a useful gauge, it should be considered along with other factors, including the company’s risks and market conditions, before making an investment decision.
For those looking for investment opportunities elsewhere, there are lists of companies with insider interest that may present other attractive options.
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