Yahoo Finance Have Insiders Been Buying Morien Resources Corp. (CVE:MOX) Shares?
We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Morien Resources Corp. (CVE:MOX).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
View our latest analysis for Morien Resources
The Last 12 Months Of Insider Transactions At Morien Resources
Executive Chairman John Philip Budreski made the biggest insider purchase in the last 12 months. That single transaction was for CA$241k worth of shares at a price of CA$0.25 each. We do like to see buying, but this purchase was made at well below the current price of CA$0.38. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Happily, we note that in the last year insiders paid CA$474k for 1.5m shares. But they sold 100k for CA$48k. In total, Morien Resources insiders bought more than they sold over the last year. They paid about CA$0.31 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. You can see the insider transactions (by 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!
Morien Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Morien Resources Have Bought Stock Recently
There has been significantly more insider buying, than selling, at Morien Resources, over the last three months. In total, two insiders bought CA$232k worth of shares in that time. But we did see Charles Pitcher sell shares worth CA$48k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Does Morien Resources Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Morien Resources insiders own about CA$2.5m worth of shares (which is 12% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Morien Resources Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Morien Resources insiders are reasonably well aligned, and optimistic for the future. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course Morien 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
