Yahoo Finance Abcourt Mines' Market Cap Drops To CA$26m Leaving Insiders With Losses \
The recent price decline of 14% in Abcourt Mines Inc.'s (CVE:ABI) stock may have disappointed insiders who bought CA$1.7m worth of shares at an average price of CA$0.088 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth CA$1.2m which is not ideal.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Abcourt Mines
The Last 12 Months Of Insider Transactions At Abcourt Mines
The Non-Independent Director Renaud Hinse made the biggest insider purchase in the last 12 months. That single transaction was for CA$665k worth of shares at a price of CA$0.10 each. That means that even when the share price was higher than CA$0.06 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Abcourt Mines insiders were buying shares, but not selling. They paid about CA$0.088 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At Abcourt Mines Have Bought Stock Recently
There was some insider buying at Abcourt Mines over the last quarter. Chairman of the Board Francois Joseph Pierre Mestrallet bought CA$38k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership Of Abcourt 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 appears that Abcourt Mines insiders own 31% of the company, worth about CA$8.0m. 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 Abcourt Mines Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders own shares in Abcourt Mines and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 5 warning signs for Abcourt Mines (2 shouldn't be ignored) you should be aware of.
But note: Abcourt Mines 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, but not derivative transactions.
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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.
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