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Trade Alert: The Vice President of Strategy & Capital Markets Of Capstone Mining Corp. (TSE:CS), Jerrold Annett, Has Just Spent US$106k Buying 1.3% More Shares

Simply Wall St
·3 min read

Whilst it may not be a huge deal, we thought it was good to see that the Capstone Mining Corp. (TSE:CS) Vice President of Strategy & Capital Markets, Jerrold Annett, recently bought CA$106k worth of stock, for CA$2.05 per share. Although the purchase is not a big one, increasing their shareholding by only 1.3%, it can be interpreted as a good sign.

View our latest analysis for Capstone Mining

Capstone Mining Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Dale Peniuk, sold CA$153k worth of shares at a price of CA$1.44 per share. That means that even when the share price was below the current price of CA$2.27, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 32% of Dale Peniuk's stake. The only individual insider seller over the last year was Dale Peniuk.

Over the last year, we can see that insiders have bought 121.26k shares worth CA$149k. But insiders sold 106.35k shares worth CA$153k. 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!

insider-trading-volume
insider-trading-volume

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Capstone Mining Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Capstone Mining insiders own 3.0% of the company, worth about CA$29m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Capstone Mining Tell Us?

Insider selling has just outweighed insider buying in the last three months. But the net divestment is not enough to concern us at all. Recent insider selling makes us a little nervous, in light of the broader picture of Capstone Mining insider transactions. The modest level of insider ownership is, at least, some comfort. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Capstone Mining has 2 warning signs and it would be unwise to ignore these.

Of course Capstone Mining 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.