Jupiter Mines Limited (ASX:JMS) shareholders (or potential shareholders) will be happy to see that the Independent Non-Executive Chairman, Brian Gilbertson, recently bought a whopping AU$2.7m worth of stock, at a price of AU$0.27. That purchase boosted their holding by 87%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
Jupiter Mines Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Non-Executive Chairman Brian Gilbertson was not the only time they bought Jupiter Mines shares this year. Earlier in the year, they paid AU$0.29 per share in a AU$2.9m purchase. That means that even when the share price was higher than AU$0.28 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Brian Gilbertson was the only individual insider to buy shares in the last twelve months.
Brian Gilbertson bought 21.48m shares over the last 12 months at an average price of AU$0.28. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Jupiter Mines
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 4.9% of Jupiter Mines shares, worth about AU$26m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Jupiter Mines Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Jupiter Mines insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Jupiter Mines has 1 warning sign and it would be unwise to ignore this.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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. 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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