Investors who take an interest in Denison Mines Corp. (TSE:DML) should definitely note that the President, David Cates, recently paid CA$0.68 per share to buy CA$150k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 44%.
The Last 12 Months Of Insider Transactions At Denison Mines
Notably, that recent purchase by David Cates is the biggest insider purchase of Denison Mines shares that we've seen in the last year. That means that even when the share price was higher than CA$0.53 (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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Denison Mines insiders were buying shares, but not selling. You can see the insider transactions (by 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!
Denison Mines is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Denison Mines
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Denison Mines insiders have about 0.5% of the stock, worth approximately CA$1.5m. I generally like to see higher levels of ownership.
So What Do The Denison Mines Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Denison Mines stock. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Denison Mines 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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