Yahoo Finance Insiders who bought in the last 12 months lose an additional CA$17k as Stuhini Exploration Ltd. (CVE:STU) drops to CA$14m
The recent 20% drop in Stuhini Exploration Ltd.'s (CVE:STU) stock could come as a blow to insiders who purchased CA$549k worth of stock at an average buy price of CA$0.57 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth CA$532k which is not ideal.
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 Stuhini Exploration
The Last 12 Months Of Insider Transactions At Stuhini Exploration
The insider Eric Sprott made the biggest insider purchase in the last 12 months. That single transaction was for CA$250k worth of shares at a price of CA$0.50 each. So it's clear an insider wanted to buy, at around the current price, which is CA$0.55. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
Over the last year, we can see that insiders have bought 967.00k shares worth CA$549k. On the other hand they divested 7.50k shares, for CA$5.3k. Overall, Stuhini Exploration insiders were net buyers during the last year. They paid about CA$0.57 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
Stuhini Exploration 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.
Stuhini Exploration Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Stuhini Exploration. In total, insiders bought CA$54k worth of shares in that time. But Chief Financial Officer Yanika Silina sold CA$2.5k worth. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.
Does Stuhini Exploration 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 35% of Stuhini Exploration shares, worth about CA$5.1m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Stuhini Exploration Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Stuhini Exploration shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Stuhini Exploration is showing 6 warning signs in our investment analysis, and 3 of those are potentially serious...
But note: Stuhini Exploration 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.
