Yahoo Finance Bullish insiders bet US$1.0m on Ivanhoe Mines Ltd. (TSE:IVN)
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Ivanhoe Mines Ltd.'s (TSE:IVN) 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.
View our latest analysis for Ivanhoe Mines
The Last 12 Months Of Insider Transactions At Ivanhoe Mines
The insider, Louis Watum, made the biggest insider sale in the last 12 months. That single transaction was for CA$520k worth of shares at a price of CA$7.38 each. That means that even when the share price was below the current price of CA$9.99, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 100% of Louis Watum's holding.
Happily, we note that in the last year insiders paid CA$1.0m for 142.50k shares. But they sold 79.87k shares for CA$583k. In the last twelve months there was more buying than selling by Ivanhoe Mines insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Ivanhoe 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 Ivanhoe Mines
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Ivanhoe Mines insiders own 14% of the company, worth about CA$1.7b. 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 Ivanhoe Mines Insiders?
It doesn't really mean much that no insider has traded Ivanhoe Mines shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Ivanhoe Mines 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 Ivanhoe Mines. Case in point: We've spotted 1 warning sign for Ivanhoe Mines you should be aware of.
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, but not derivative transactions.
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.
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