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Over the last year, a good number of insiders have significantly increased their holdings in Millennial Potash Corp. (CVE:MLP). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
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.
See our latest analysis for Millennial Potash
Millennial Potash Insider Transactions Over The Last Year
Notably, that recent purchase by Ross Jennings is the biggest insider purchase of Millennial Potash shares that we've seen in the last year. That implies that an insider found the current price of CA$0.30 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Millennial Potash share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 7.84m shares worth CA$2.1m. But insiders sold 500.00k shares worth CA$125k. Overall, Millennial Potash insiders were net buyers during the last year. 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!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Millennial Potash Insiders Bought Stock Recently
Over the last quarter, Millennial Potash insiders have spent a meaningful amount on shares. insider Ross Jennings spent CA$1.3m on stock, and there wasn't any selling. That shows some optimism about the company's future.
Does Millennial Potash Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Millennial Potash insiders own about CA$8.3m worth of shares (which is 40% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Millennial Potash Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Millennial Potash. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Millennial Potash. To help with this, we've discovered 5 warning signs (2 are significant!) that you ought to be aware of before buying any shares in Millennial Potash.