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CEO & Director Josephus Groot Just Bought 44% More Shares In Infinity Mining Limited (ASX:IMI)

·3 min read

Even if it's not a huge purchase, we think it was good to see that Josephus Groot, the CEO & Director of Infinity Mining Limited (ASX:IMI) recently shelled out AU$95k to buy stock, at AU$0.17 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 44%.

See our latest analysis for Infinity Mining

The Last 12 Months Of Insider Transactions At Infinity Mining

Notably, that recent purchase by Josephus Groot is the biggest insider purchase of Infinity Mining shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (AU$0.20), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Infinity Mining insiders may have bought shares in the last year, but they didn't sell any. 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!

insider-trading-volume
insider-trading-volume

Infinity Mining is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Infinity Mining Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 17% of Infinity Mining shares, worth about AU$3.8m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Infinity Mining Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Infinity Mining we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Infinity Mining. Every company has risks, and we've spotted 2 warning signs for Infinity Mining (of which 1 is concerning!) 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, but not derivative transactions.

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

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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