Yahoo Finance Favourable Signals For MTB Metals: Numerous Insiders Acquired Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in MTB Metals Corp.'s (CVE:MTB) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for MTB Metals
MTB Metals Insider Transactions Over The Last Year
The insider Ross Beaty made the biggest insider purchase in the last 12 months. That single transaction was for CA$100k worth of shares at a price of CA$0.16 each. That means that an insider was happy to buy shares at above the current price of CA$0.03. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. We note that Ross Beaty was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 8.26m shares for CA$661k. On the other hand they divested 1.00m shares, for CA$148k. In total, MTB Metals insiders bought more than they sold over the last year. Their average price was about CA$0.08. These transactions suggest that insiders have considered the current price attractive. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At MTB Metals Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at MTB Metals. Overall, two insiders shelled out CA$141k for shares in the company -- and none sold. This makes one think the business has some good points.
Does MTB Metals Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that MTB Metals insiders own 36% of the company, worth about CA$1.3m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At MTB Metals Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in MTB Metals 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. Our analysis shows 5 warning signs for MTB Metals (4 are potentially serious!) and we strongly recommend you look at these before investing.
But note: MTB Metals 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 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
