How Much Are Mexican Gold Corp. (CVE:MEX) Insiders Spending On Buying Shares?
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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Mexican Gold Corp. (CVE:MEX), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
View our latest analysis for Mexican Gold
The Last 12 Months Of Insider Transactions At Mexican Gold
CEO & Director Carl Hering made the biggest insider purchase in the last 12 months. That single transaction was for CA$100k worth of shares at a price of CA$0.20 each. That means that an insider was happy to buy shares at above the current price. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. We generally consider it a positive if insiders have been buying on market, even above the current price.
Over the last year, we can see that insiders have bought 625.00k shares worth CA$135k. In total, Mexican Gold insiders bought more than they sold over the last year. Their average price was about CA$0.22. I’d consider this a positive as it suggests insiders see value at around the current price, which is CA$0.17. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Mexican Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Mexican Gold Have Bought Stock Recently
Over the last quarter, Mexican Gold insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought CA$103k worth of shares. This could be interpreted as suggesting a positive outlook.
Does Mexican Gold 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Mexican Gold insiders own 6.2% of the company, worth about CA$578k. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Mexican Gold Insiders?
It’s certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Mexican Gold insiders are reasonably well aligned, and optimistic for the future. Along with insider transactions, I recommend checking if Mexican Gold is growing revenue. This free chart of historic revenue and earnings should make that easy.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
