Bullish Mirasol Resources Insiders Loaded Up On CA$2.76m Of Stock
Over the last year, a good number of insiders have significantly increased their holdings in Mirasol Resources Ltd. (CVE:MRZ). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
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.
Check out our latest analysis for Mirasol Resources
The Last 12 Months Of Insider Transactions At Mirasol Resources
The Independent Director John Tognetti made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.0m worth of shares at a price of CA$1.25 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.65). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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.
While Mirasol Resources insiders bought shares during the last year, they didn't sell. The average buy price was around CA$0.82. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
Mirasol Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Mirasol Resources Insiders Bought Stock Recently
It's good to see that Mirasol Resources insiders have made notable investments in the company's shares. In total, insiders bought CA$269k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Does Mirasol Resources Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Mirasol Resources insiders own 41% of the company, currently worth about CA$17m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Mirasol Resources Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Mirasol Resources insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. For example, Mirasol Resources has 5 warning signs (and 3 which can't be ignored) we think you should know about.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
