Jaguar Mining Inc. (TSE:JAG) shareholders (or potential shareholders) will be happy to see that insider Eric Sprott recently bought a whopping CA$7.0m worth of stock, at a price of CA$0.18. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 12%.
Jaguar Mining Insider Transactions Over The Last Year
In fact, the recent purchase by insider Eric Sprott was not their only acquisition of Jaguar Mining shares this year. Earlier in the year, they paid CA$0.085 per share in a CA$20m purchase. Even though the purchase was made at a significantly lower price than the recent price (CA$0.24), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Jaguar Mining insiders bought shares last year, they didn't sell. The average buy price was around CA$0.10. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Jaguar Mining is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. It's great to see that Jaguar Mining insiders own 49% of the company, worth about CA$88m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Jaguar Mining Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Jaguar Mining. One for the watchlist, at least! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Jaguar 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.
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