When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Collective Mining Ltd.'s (CVE:CNL) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Collective Mining
The Last 12 Months Of Insider Transactions At Collective Mining
The Executive Chairman Ari Sussman made the biggest insider purchase in the last 12 months. That single transaction was for CA$500k worth of shares at a price of CA$2.25 each. Even though the purchase was made at a significantly lower price than the recent price (CA$5.95), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months Collective Mining insiders were buying shares, but not selling. Their average price was about CA$2.70. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Collective 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.
Insiders At Collective Mining Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Collective Mining. In total, insiders bought CA$500k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Insider Ownership
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. Insiders own 37% of Collective Mining shares, worth about CA$131m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Collective Mining Insiders?
The recent insider purchases are heartening. 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Collective Mining. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Collective Mining. For example, Collective Mining has 4 warning signs (and 2 which are a bit concerning) we think you should know about.