John Tognetti Bought 5.3% More Shares In Mirasol Resources \
Those following along with Mirasol Resources Ltd. (CVE:MRZ) will no doubt be intrigued by the recent purchase of shares by John Tognetti, Independent Director of the company, who spent a stonking CA$1.0m on stock at an average price of CA$1.25. While that only increased their holding size by 5.3%, it is still a big swing by our standards.
See our latest analysis for Mirasol Resources
Mirasol Resources Insider Transactions Over The Last Year
Notably, that recent purchase by John Tognetti is the biggest insider purchase of Mirasol Resources shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of CA$1.10. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Mirasol Resources insiders were buying shares, but not selling. They paid about CA$0.75 on average. 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. 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!
Mirasol Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Mirasol Resources insiders own about CA$29m worth of shares. That equates to 39% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Mirasol Resources Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Mirasol Resources shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mirasol Resources. Our analysis shows 5 warning signs for Mirasol Resources (2 are significant!) and we strongly recommend you look at these before investing.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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