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A Musgrave Minerals Limited (ASX:MGV) insider increased their holdings by 51% last year

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From what we can see, insiders were net buyers in Musgrave Minerals Limited's (ASX:MGV ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Musgrave Minerals

The Last 12 Months Of Insider Transactions At Musgrave Minerals

In the last twelve months, the biggest single purchase by an insider was when insider Ernest Albers bought AU$2.6m worth of shares at a price of AU$0.48 per share. That means that even when the share price was higher than AU$0.36 (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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Ernest Albers.

Ernest Albers bought 13.70m shares over the last 12 months at an average price of AU$0.30. 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!

insider-trading-volume
insider-trading-volume

Musgrave Minerals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders at Musgrave Minerals Have Bought Stock Recently

At Musgrave Minerals,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, insider Ernest Albers bought AU$2.6m worth of shares in that time. On the other hand, Independent Non-Executive Director John Morgan Percival netted AU$179k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership of Musgrave Minerals

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Musgrave Minerals insiders own about AU$27m worth of shares. That equates to 14% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Musgrave Minerals Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Musgrave Minerals shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Musgrave Minerals. At Simply Wall St, we've found that Musgrave Minerals has 3 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

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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