Yahoo Finance Insider Spends AU$1.2m Buying More Shares In Eagle Mountain Mining
Those following along with Eagle Mountain Mining Limited (ASX:EM2) will no doubt be intrigued by the recent purchase of shares by Charles Bass, MD & Executive Director of the company, who spent a stonking AU$1.2m on stock at an average price of AU$0.06. Not only is that a big swing, but it increased their holding size by 25%, which is definitely great to see.
View our latest analysis for Eagle Mountain Mining
The Last 12 Months Of Insider Transactions At Eagle Mountain Mining
In fact, the recent purchase by Charles Bass was the biggest purchase of Eagle Mountain Mining shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.057). 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 Eagle Mountain Mining insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Eagle Mountain Mining 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 Eagle Mountain Mining
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 appears that Eagle Mountain Mining insiders own 32% of the company, worth about AU$6.8m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Eagle Mountain Mining Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Eagle Mountain Mining we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Eagle Mountain Mining you should be aware of, and 1 of these is concerning.
But note: Eagle Mountain 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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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.
