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The Executive Chairman & CEO of Southern Arc Minerals Inc. (CVE:SA), John Proust, Just Bought 34% More Shares

Those following along with Southern Arc Minerals Inc. (CVE:SA) will no doubt be intrigued by the recent purchase of shares by John Proust, Executive Chairman & CEO of the company, who spent a stonking CA$1.2m on stock at an average price of CA$0.89. Not only is that a big swing, but it increased their holding size by 34%, which is definitely great to see.

Check out our latest analysis for Southern Arc Minerals

Southern Arc Minerals Insider Transactions Over The Last Year

Notably, that recent purchase by John Proust is the biggest insider purchase of Southern Arc Minerals shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is CA$0.89. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Southern Arc Minerals insiders decided to buy shares at close to current prices. Notably John Proust was also the biggest seller.

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In the last twelve months insiders purchased 3.51m shares for CA$2.0m. But they sold 750.00k shares for CA$668k. Overall, Southern Arc Minerals insiders were net buyers during the last year. The average buy price was around CA$0.56. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

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. Southern Arc Minerals insiders own about CA$8.3m worth of shares (which is 48% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Southern Arc Minerals Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Southern Arc Minerals. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Southern Arc Minerals has 3 warning signs we think you should be aware of.

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, but not derivative transactions.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.