Yahoo Finance Insiders who bought in the last 12 months lose an additional AU$46k as Metro Mining Limited (ASX:MMI) drops to AU$72m
Insiders who acquired AU$91k worth of Metro Mining Limited's (ASX:MMI) stock at an average price of AU$0.048 in the past 12 months may be dismayed by the recent 11% price decline. 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 AU$46k which is not ideal.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Metro Mining
Metro Mining Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Susanne Willims for AU$81k worth of shares, at about AU$0.058 per share. That means that even when the share price was higher than AU$0.024 (the recent price), an insider wanted to purchase shares. 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 always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Metro Mining insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.048 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
Metro Mining is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Are Metro Mining Insiders Buying Or Selling?
Over the last three months, we've seen a bit of insider buying at Metro Mining. Independent Non-Executive Director Fiona Murdoch purchased AU$10k worth of shares in that period. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Metro Mining insiders own about AU$5.0m worth of shares (which is 7.0% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Metro Mining Insiders?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Metro Mining insiders are doubting the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Metro Mining (of which 1 shouldn't be ignored!) you should know about.
Of course Metro Mining 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.
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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.
