Yahoo Finance Insiders Rewarded With US$978k Addition To Investment As Meridian Mining UK Societas Stock Hits CA$123m
Insiders who bought Meridian Mining UK Societas (TSE:MNO) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$46m as a result of the stock's 24% gain over the same period. As a result, their original purchase of US$3.66m worth of stock is now worth US$4.63m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Meridian Mining UK Societas
Meridian Mining UK Societas Insider Transactions Over The Last Year
In fact, the recent purchase by Henry Maxey was the biggest purchase of Meridian Mining UK Societas shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (CA$0.45), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Meridian Mining UK Societas insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Meridian Mining UK Societas is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Meridian Mining UK Societas Have Bought Stock Recently
Over the last quarter, Meridian Mining UK Societas insiders have spent a meaningful amount on shares. In total, insiders bought CA$3.6m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does Meridian Mining UK Societas Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. It appears that Meridian Mining UK Societas insiders own 14% of the company, worth about CA$17m. 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 Meridian Mining UK Societas Insiders?
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 Meridian Mining UK Societas we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Meridian Mining UK Societas. Every company has risks, and we've spotted 3 warning signs for Meridian Mining UK Societas (of which 1 doesn't sit too well with us!) you should know about.
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 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.
