Insider Buyers Lose Additional CA$20k As Minsud Resources Dips To CA$88m
Insiders who acquired CA$167.0k worth of Minsud Resources Corp.'s (CVE:MSR) stock at an average price of CA$0.50 in the past 12 months may be dismayed by the recent 15% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only CA$147.0k.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Minsud Resources
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman of the Board Carlos Adamo bought CA$107k worth of shares at a price of CA$0.50 per share. That means that even when the share price was higher than CA$0.44 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid CA$167k for 334.00k shares. But insiders sold 6.50k shares worth CA$3.9k. Overall, Minsud Resources insiders were net buyers during the last year. 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!
See our latest analysis for Minsud Resources
Minsud Resources is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Are Minsud Resources Insiders Buying Or Selling?
In the last quarter Director Ramiro Massa sold CA$3.9k worth of equity. That's not a lot. Looking at the net result, we don't think this recent trading sheds much light on how insiders, as a group, are feeling about the company's prospects.
Insider Ownership Of Minsud Resources
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. Minsud Resources insiders own about CA$14m worth of shares. That equates to 16% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Minsud Resources Insiders?
Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we're not worried. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Minsud Resources and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Minsud Resources. Every company has risks, and we've spotted 3 warning signs for Minsud Resources (of which 2 are a bit concerning!) you should know about.
Of course Minsud Resources may not be the best stock to buy. So you may wish to see this free collection of high quality 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.