Yahoo Finance Did Jupiter Mines Limited (ASX:JMS) Insiders Buy Up More Shares?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Jupiter Mines Limited (ASX:JMS), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
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, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. 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'.
Check out our latest analysis for Jupiter Mines
The Last 12 Months Of Insider Transactions At Jupiter Mines
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Brian Gilbertson bought AU$2.7m worth of shares at a price of AU$0.27 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.30. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Jupiter Mines insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Jupiter Mines 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.
Jupiter Mines Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Jupiter Mines. Not only was there no selling that we can see, but they collectively bought AU$2.7m worth of shares. This is a positive in our book as it implies some confidence.
Insider Ownership of Jupiter Mines
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Jupiter Mines insiders own about AU$32m worth of shares. That equates to 5.4% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Jupiter Mines Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Jupiter Mines insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jupiter Mines. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Jupiter Mines.
Of course Jupiter Mines may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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. 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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