Investors who take an interest in Great Southern Mining Limited (ASX:GSN) should definitely note that the Executive Chairman & CEO, John Terpu, recently paid AU$0.018 per share to buy AU$207k worth of the stock. Although the purchase only increased their holding by 7.6%, it is still a solid purchase in our view.

See our latest analysis for Great Southern Mining

Great Southern Mining Insider Transactions Over The Last Year

Notably, that recent purchase by John Terpu is the biggest insider purchase of Great Southern 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$0.02. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Great Southern Mining insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.024. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Great Southern Mining is not the only stock that insiders are buying. For those who like to find winning investments 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Great Southern Mining insiders own 48% of the company, currently worth about AU$6.3m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Great Southern Mining 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. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Great Southern Mining. Looks promising! 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. At Simply Wall St, we've found that Great Southern Mining has 6 warning signs (4 are potentially serious!) that deserve your attention before going any further with your analysis.

But note: Great Southern Mining may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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