Yahoo Finance A number of insiders bought Mountain Boy Minerals Ltd. (CVE:MTB) stock last year, which is great news for shareholders
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Mountain Boy Minerals Ltd. (CVE:MTB), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Mountain Boy Minerals
The Last 12 Months Of Insider Transactions At Mountain Boy Minerals
The Independent Chairman Rene Bernard made the biggest insider purchase in the last 12 months. That single transaction was for CA$77k worth of shares at a price of CA$0.12 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.10). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 4.04m shares for CA$599k. On the other hand they divested 5.00k shares, for CA$850. In total, Mountain Boy Minerals insiders bought more than they sold over the last year. Their average price was about CA$0.15. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Mountain Boy Minerals 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.
Mountain Boy Minerals Insiders Bought Stock Recently
It's good to see that Mountain Boy Minerals insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$242k worth of shares. That shows some optimism about the company's future.
Does Mountain Boy Minerals Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Mountain Boy Minerals insiders own 40% of the company, worth about CA$2.6m. 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 Mountain Boy Minerals Tell Us?
It's certainly positive to see the recent insider purchases. 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 Mountain Boy Minerals shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mountain Boy Minerals. Case in point: We've spotted 5 warning signs for Mountain Boy Minerals you should be aware of, and 3 of them are a bit unpleasant.
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.
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