Yahoo Finance Even though Mkango Resources Ltd.'s (CVE:MKA) stock is down 15% this week, insiders who bought lately made a US$18k profit
Insiders who bought Mkango Resources Ltd. (CVE:MKA) stock lover the last 12 months are probably not as affected by last week’s 15% loss. Even after accounting for the recent loss, the US$166k worth of stock purchased by them is now worth US$184k or in other words, their investment continues to give good returns.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Mkango Resources
The Last 12 Months Of Insider Transactions At Mkango Resources
Notably, that recent purchase by William Dawes is the biggest insider purchase of Mkango Resources shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is CA$0.23. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Mkango Resources insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was William Dawes.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Mkango Resources 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 Of Mkango Resources
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Mkango Resources insiders own 12% of the company, worth about CA$6.6m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Mkango Resources Insiders?
It is good 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Mkango Resources insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mkango Resources. To that end, you should learn about the 7 warning signs we've spotted with Mkango Resources (including 5 which are a bit concerning).
Of course Mkango Resources 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, 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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
