Yahoo Finance As Fidelity Minerals Corp. (CVE:FMN) gains 16%, insiders who bought last year may be wishing they had bet higher
Fidelity Minerals Corp. (CVE:FMN) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 16%, resulting in a CA$2.2m rise in the company's market capitalisation. As a result, the stock they originally bought for CA$125k is now worth CA$137k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Fidelity Minerals
The Last 12 Months Of Insider Transactions At Fidelity Minerals
In fact, the recent purchase by John Byrne was the biggest purchase of Fidelity Minerals shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is CA$0.11. 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. The good news for Fidelity Minerals share holders is that insiders were buying at near the current price.
While Fidelity Minerals insiders bought shares during the last year, they didn't sell. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Fidelity Minerals Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Fidelity Minerals. Not only was there no selling that we can see, but they collectively bought CA$125k worth of shares. This could be interpreted as suggesting a positive outlook.
Insider Ownership
Many investors like to check how much of a company is owned by 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. Our data indicates that Fidelity Minerals insiders own about CA$659k worth of shares (which is 7.1% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Fidelity Minerals Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give 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 Fidelity Minerals insiders are expecting a bright future. 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. Case in point: We've spotted 3 warning signs for Fidelity Minerals you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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.
