Yahoo Finance Insiders at Finlay Minerals Ltd. (CVE:FYL) recouped some losses this week after buying this year, still down CA$52k
Insiders who purchased CA$206k worth of Finlay Minerals Ltd. (CVE:FYL) shares over the past year recouped some of their losses after price gained 13% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling CA$52k.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Finlay Minerals
The Last 12 Months Of Insider Transactions At Finlay Minerals
The Director John Barakso made the biggest insider purchase in the last 12 months. That single transaction was for CA$150k worth of shares at a price of CA$0.13 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.085). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. John Barakso was the only individual insider to buy shares in the last twelve months.
John Barakso bought 1.82m shares over the last 12 months at an average price of CA$0.11. 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!
Finlay Minerals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Finlay Minerals 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 17% of Finlay Minerals shares, worth about CA$1.9m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Finlay Minerals Insider Transactions Indicate?
The recent insider purchase is heartening. 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. Given that insiders also own a fair bit of Finlay Minerals we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Finlay Minerals. To help with this, we've discovered 5 warning signs (4 are a bit unpleasant!) that you ought to be aware of before buying any shares in Finlay Minerals.
Of course Finlay Minerals 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.
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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.
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