Positive Signs As Multiple Insiders Buy Collective Mining Stock
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Collective Mining Ltd. (TSE:CNL), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Collective Mining
The Last 12 Months Of Insider Transactions At Collective Mining
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Paul Murphy, sold CA$370k worth of shares at a price of CA$6.16 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (CA$4.46). So it is hard to draw any strong conclusion from it.
Happily, we note that in the last year insiders paid CA$500k for 117.73k shares. On the other hand they divested 80.00k shares, for CA$490k. In total, Collective Mining insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Collective Mining is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Collective Mining Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Collective Mining shares. In total, insiders dumped CA$490k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Insider Ownership Of Collective Mining
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. It appears that Collective Mining insiders own 36% of the company, worth about CA$98m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Collective Mining Tell Us?
Insiders sold Collective Mining shares recently, but they didn't buy any. But we take heart from prior transactions. And insiders do own shares. So we're not overly bothered by recent selling. 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. For example, Collective Mining has 3 warning signs (and 1 which can't be ignored) we think you should know about.
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 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.
