It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Trevali Mining Corporation (TSE:TV).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Trevali Mining Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chief Operating Officer Bryant Schwengler for CA$99k worth of shares, at about CA$0.51 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.35). 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 687k shares worth CA$364k. But insiders sold 57775 shares worth CA$52k. In the last twelve months there was more buying than selling by Trevali Mining insiders. You can see the insider transactions (by 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!
Trevali Mining is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Trevali Mining Insiders Bought Stock Recently
There has been significantly more insider buying, than selling, at Trevali Mining, over the last three months. Insiders spent US$112k on shares. But Paul Keller sold shares worth US$6.8k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Does Trevali 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 looking at our data, insiders own CA$2.6m worth of Trevali Mining stock, about 0.9% of the company. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Trevali Mining Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Trevali Mining insiders are reasonably well aligned, and optimistic for the future. Of course, the future is what matters most. So if you are interested in Trevali Mining, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.