Yahoo Finance Pierre Lassonde of Prime Mining Corp. (CVE:PRYM) Just Spent CA$4.2m On Shares
Those following along with Prime Mining Corp. (CVE:PRYM) will no doubt be intrigued by the recent purchase of shares by insider Pierre Lassonde, who spent a stonking CA$4.2m on stock at an average price of CA$4.17. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 8.3%.
See our latest analysis for Prime Mining
Prime Mining Insider Transactions Over The Last Year
Notably, that recent purchase by Pierre Lassonde is the biggest insider purchase of Prime Mining shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is CA$4.44. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Prime Mining insiders decided to buy shares at close to current prices.
Prime Mining insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around CA$3.24. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Prime Mining is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Prime Mining Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 21% of Prime Mining shares, worth about CA$103m. 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 Prime Mining Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Prime Mining insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Prime Mining you should be aware of, and 1 of them shouldn't be ignored.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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