Non Executive Director Alexander Alan Molyneux Just Bought 3.4% More Shares In Galena Mining Limited (ASX:G1A)
Even if it's not a huge purchase, we think it was good to see that Alexander Alan Molyneux, the Non Executive Director of Galena Mining Limited (ASX:G1A) recently shelled out AU$93k to buy stock, at AU$0.23 per share. However, it only increased their shares held by 3.4%, and it wasn't a huge purchase by absolute value, either.
See our latest analysis for Galena Mining
Galena Mining Insider Transactions Over The Last Year
Notably, that recent purchase by Non Executive Director Alexander Alan Molyneux was not the only time they bought Galena Mining shares this year. Earlier in the year, they paid AU$0.12 per share in a AU$415k purchase. We do like to see buying, but this purchase was made at well below the current price of AU$0.23. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Galena Mining insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$0.14. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Does Galena 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Galena Mining insiders own about AU$33m worth of shares. That equates to 24% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Galena Mining Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Galena Mining we think they are probably pretty confident of a bright future. 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. Every company has risks, and we've spotted 5 warning signs for Galena Mining (of which 2 make us uncomfortable!) you should know about.
But note: Galena Mining may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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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