Yahoo Finance Wiluna Mining Corporation Limited (ASX:WMC) drops to AU$122m and insiders who purchased earlier this year lose another AU$229k
The recent 39% drop in Wiluna Mining Corporation Limited's (ASX:WMC) stock could come as a blow to insiders who purchased AU$350k worth of stock at an average buy price of AU$1.00 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only AU$121k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Wiluna Mining
Wiluna Mining Insider Transactions Over The Last Year
The Executive Chairman & Interim CEO Milan Jerkovic made the biggest insider purchase in the last 12 months. That single transaction was for AU$350k worth of shares at a price of AU$1.00 each. That means that even when the share price was higher than AU$0.34 (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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Milan Jerkovic was the only individual insider to buy shares in the last twelve months.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Wiluna Mining 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.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own AU$4.0m worth of Wiluna Mining stock, about 3.3% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Wiluna Mining Tell Us?
It doesn't really mean much that no insider has traded Wiluna Mining shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Wiluna Mining insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Wiluna Mining. For example, Wiluna Mining has 3 warning signs (and 1 which is concerning) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
