Positive Signs As Multiple Insiders Buy Jaguar Mining Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Jaguar Mining Inc.'s (TSE:JAG) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Jaguar Mining
The Last 12 Months Of Insider Transactions At Jaguar Mining
Over the last year, we can see that the biggest insider purchase was by Independent Chairman William Kennedy for CA$108k worth of shares, at about CA$2.15 per share. That means that an insider was happy to buy shares at above the current price of CA$1.50. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for 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.
Jaguar Mining insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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.
Insiders At Jaguar Mining Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Jaguar Mining. President & CEO Vernon Baker shelled out CA$21k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Does Jaguar Mining Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. Jaguar Mining insiders own about CA$54m worth of shares (which is 46% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Jaguar Mining Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Jaguar Mining insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jaguar Mining. Every company has risks, and we've spotted 3 warning signs for Jaguar Mining you should know about.
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.
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.
