Insider Spends US$108k Buying More Shares In Jaguar Mining \
Even if it's not a huge purchase, we think it was good to see that William Kennedy, the Independent Chairman of Jaguar Mining Inc. (TSE:JAG) recently shelled out CA$108k to buy stock, at CA$2.15 per share. While that isn't the hugest buy, it actually boosted their shareholding by 500%, which is good to see.
Check out our latest analysis for Jaguar Mining
Jaguar Mining Insider Transactions Over The Last Year
Notably, that recent purchase by William Kennedy is the biggest insider purchase of Jaguar Mining shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of CA$2.15. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Jaguar Mining insiders decided to buy shares at close to current prices.
While Jaguar Mining insiders bought shares during the last year, they didn't sell. The average buy price was around CA$2.41. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and 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.
Does Jaguar 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. It's great to see that Jaguar Mining insiders own 50% of the company, worth about CA$78m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Jaguar Mining Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Jaguar Mining insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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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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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