It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Coro Mining Corp. (TSE:COP).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
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Coro Mining Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Vice President Corporate Development & Investor Relations Nicholas Bias bought CA$104k worth of shares at a price of CA$0.05 per share. That means that an insider was happy to buy shares at around the current price. That means they have been optimistic about the company in the past, though they may have changed their mind. We generally consider it a positive if insiders have been buying on market, even if the share price has increased a bit since then.
Over the last year, we can see that insiders have bought 4.11m shares worth CA$220k. In the last twelve months there was more buying than selling by Coro Mining insiders. The average buy price was around CA$0.054. It’s great to see insiders putting their own cash into the company’s stock, albeit at below the recent share price (CA$0.055). The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Coro Mining Have Bought Stock Recently
It’s good to see that Coro Mining insiders have made notable investments in the company’s shares. Specifically, Nicholas Bias bought US$104k worth of shares in that time, and we didn’t record any sales whatsoever. This makes one think the business has some good points.
Does Coro 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. We usually like to see fairly high levels of insider ownership. From what we can see in our data, insiders own only about CA$637k worth of Coro Mining shares. It’s always possible we are missing something but from our data, it looks like insider ownership is minimal.
So What Do The Coro Mining Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Coro Mining insiders are expecting a bright future. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free .
Of course Coro Mining may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.