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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Mirasol Resources Ltd.'s (CVE:MRZ) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Mirasol Resources
Mirasol Resources Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director John Tognetti bought CA$600k worth of shares at a price of CA$0.60 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.45). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Mirasol Resources insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Mirasol Resources is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Mirasol Resources Insiders Bought Stock Recently
It's good to see that Mirasol Resources insiders have made notable investments in the company's shares. We can see that insider Glenn Pountney paid CA$76k for shares in the company. No-one sold. That shows some optimism about the company's future.
Does Mirasol Resources Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Mirasol Resources insiders own about CA$13m worth of shares. That equates to 39% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Mirasol Resources Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Mirasol Resources shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mirasol Resources. To that end, you should learn about the 4 warning signs we've spotted with Mirasol Resources (including 2 which are significant).