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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of O3 Mining Inc. (CVE:OIII), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At O3 Mining
In the last twelve months, the biggest single purchase by an insider was when President Jose Vizquerra Benavides bought CA$199k worth of shares at a price of CA$3.07 per share. That means that even when the share price was higher than CA$2.11 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While O3 Mining insiders bought shares during the last year, they didn't sell. They paid about CA$2.71 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
O3 Mining Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at O3 Mining. Specifically, President Jose Vizquerra Benavides bought CA$79k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Does O3 Mining Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that O3 Mining insiders own about CA$10m worth of shares (which is 7.2% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About O3 Mining Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest O3 Mining 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 O3 Mining. For instance, we've identified 4 warning signs for O3 Mining (3 are a bit concerning) you should be aware of.
Of course O3 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.
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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