Yahoo Finance Did Abacus Mining & Exploration Corporation (CVE:AME) Insiders Buy Up More Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Abacus Mining & Exploration Corporation (CVE:AME), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. 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. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
See our latest analysis for Abacus Mining & Exploration
The Last 12 Months Of Insider Transactions At Abacus Mining & Exploration
In the last twelve months, the biggest single purchase by an insider was when COO & President Paul Anderson bought CA$90k worth of shares at a price of CA$0.05 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.11. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 2.70m shares for CA$135k. On the other hand they divested 1723500 shares, for CA$92k. In total, Abacus Mining & Exploration insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by 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!
Abacus Mining & Exploration 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 Abacus Mining & Exploration Have Bought Stock Recently
We saw some Abacus Mining & Exploration insider buying shares in the last three months. COO & President Paul Anderson bought CA$90k worth of shares in that time. On the other hand, COO & President Paul Anderson sold CA$62k worth of shares. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.
Does Abacus Mining & Exploration 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Abacus Mining & Exploration insiders own about CA$460k worth of shares (which is 6.7% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Abacus Mining & Exploration Insiders?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Abacus Mining & Exploration stock. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
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 editorial-team@simplywallst.com. 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.
