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Ernest Albers Just Bought 12% More Shares In Musgrave Minerals Limited (ASX:MGV)

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Musgrave Minerals Limited (ASX:MGV) shareholders (or potential shareholders) will be happy to see that insider Ernest Albers recently bought a whopping AU$858k worth of stock, at a price of AU$0.35. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 12%.

View our latest analysis for Musgrave Minerals

Musgrave Minerals Insider Transactions Over The Last Year

In fact, the recent purchase by insider Ernest Albers was not their only acquisition of Musgrave Minerals shares this year. Earlier in the year, they paid AU$0.48 per share in a AU$2.6m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.38). 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Ernest Albers was the only individual insider to buy during the last year.

Ernest Albers bought 9.23m shares over the last 12 months at an average price of AU$0.38. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

Musgrave Minerals 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.

Does Musgrave Minerals Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Musgrave Minerals insiders own 14% of the company, worth about AU$28m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Musgrave Minerals Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Musgrave Minerals shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 4 warning signs we've spotted with Musgrave Minerals (including 2 which can't be ignored).

But note: Musgrave Minerals 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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