Yahoo Finance How Many M3 Metals Corp. (CVE:MT) Shares Did Insiders Buy, In The Last Year?
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 we'll take a look at whether insiders have been buying or selling shares in M3 Metals Corp. (CVE:MT).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.
See our latest analysis for M3 Metals
The Last 12 Months Of Insider Transactions At M3 Metals
Over the last year, we can see that the biggest insider purchase was by President & Director Adrian Smith for CA$344k worth of shares, at about CA$12.50 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.12). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid CA$377k for 275.50k shares. But insiders sold 25000 shares worth CA$2.4k. Overall, M3 Metals insiders were net buyers during the last year. The average buy price was around CA$1.37. I'd consider this a positive as it suggests insiders see value at around the current 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!
M3 Metals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Have M3 Metals Insiders Traded Recently?
There was only a small bit of insider buying, worth CA$3.3k, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests M3 Metals insiders own 2.4% of the company, worth about CA$89k. We prefer to see high levels of insider ownership.
So What Do The M3 Metals Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more M3 Metals stock. 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 4 warning signs for M3 Metals you should be aware of, and 2 of these make us uncomfortable.
But note: M3 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, but not derivative transactions.
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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. 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. Thank you for reading.
