We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Great Panther Mining Limited (TSE:GPR).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
Great Panther Mining Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider James Bannantine for CA$350k worth of shares, at about CA$0.62 per share. That implies that an insider found the current price of CA$0.72 per share to be enticing. 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. 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. The good news for Great Panther Mining share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 1.35m shares for CA$1.1m. On the other hand they divested 163215 shares, for CA$192k. Overall, Great Panther Mining insiders were net buyers last year. Their average price was about CA$0.85. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by 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!
Great Panther Mining is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at Great Panther Mining Have Bought Stock Recently
It's good to see that Great Panther Mining insiders have made notable investments in the company's shares. Specifically, insider James Bannantine bought CA$350k 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 Great Panther Mining Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data suggests Great Panther Mining insiders own 1.0% of the company, worth about CA$2.2m. I generally like to see higher levels of ownership.
So What Do The Great Panther Mining Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Great Panther Mining insiders are reasonably well aligned, and optimistic for the future. Of course, the future is what matters most. So if you are interested in Great Panther Mining, you should check out this free report on analyst forecasts for the company.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.