Insiders who bought Millennial Precious Metals Corp. (CVE:MPM) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$11m as a result of the stock's 17% gain over the same period. As a result, the stock they originally bought for CA$247k is now worth CA$280k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Millennial Precious Metals Insider Transactions Over The Last Year
The Chief Financial Officer, Andres Tinajero, made the biggest insider sale in the last 12 months. That single transaction was for CA$82k worth of shares at a price of CA$0.55 each. That means that an insider was selling shares at around the current price of CA$0.54. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Andres Tinajero was the only individual insider to sell shares in the last twelve months. Notably Andres Tinajero was also the biggest buyer, having purchased CA$247k worth of shares.
Happily, we note that in the last year insiders paid CA$247k for 518.50k shares. But they sold 150.00k shares for CA$82k. Overall, Millennial Precious Metals insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Millennial Precious Metals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Have Millennial Precious Metals Insiders Traded Recently?
We've only seen a tiny insider purchase valued at CA$5.9k, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.
Does Millennial Precious Metals Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Millennial Precious Metals insiders own 11% of the company, worth about CA$8.4m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Millennial Precious Metals Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Millennial Precious Metals insiders are doubting 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. For instance, we've identified 5 warning signs for Millennial Precious Metals (1 is significant) 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.