Pleasing Signs As A Number Of Insiders Buy Generation Mining Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Generation Mining Limited's (TSE:GENM) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Generation Mining
Generation Mining Insider Transactions Over The Last Year
Notably, that recent purchase by Chief Operating Officer Edward William Anwyll was not the only time they bought Generation Mining shares this year. They previously made an even bigger purchase of CA$111k worth of shares at a price of CA$0.94 per share. That means that even when the share price was higher than CA$0.22 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Generation Mining insiders may have bought shares in the last year, but they didn't sell any. They paid about CA$0.46 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Generation Mining is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Generation Mining Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Generation Mining. Chief Operating Officer Edward William Anwyll shelled out CA$50k for shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Generation Mining insiders own about CA$3.0m worth of shares (which is 5.7% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Generation Mining Tell Us?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Generation Mining insiders are doubting the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 6 warning signs for Generation Mining (4 don't sit too well with us) you should be aware of.
But note: Generation 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
