Independent Non-Executive Chairman of Metro Mining Picks Up 27% More Stock
Whilst it may not be a huge deal, we thought it was good to see that the Metro Mining Limited (ASX:MMI) Independent Non-Executive Chairman, Douglas Walter Ritchie, recently bought AU$96k worth of stock, for AU$0.80 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 27%.
Metro Mining Insider Transactions Over The Last Year
Notably, that recent purchase by Douglas Walter Ritchie is the biggest insider purchase of Metro Mining shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$0.81. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Metro Mining share holders is that insiders were buying at near the current price.
In the last twelve months Metro Mining insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Metro Mining
Metro Mining is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Metro Mining
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 Metro Mining insiders own about AU$8.0m worth of shares (which is 3.2% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Metro Mining Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. 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 Metro Mining stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Metro Mining. While conducting our analysis, we found that Metro Mining has 1 warning sign and it would be unwise to ignore it.
But note: Metro 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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