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Those following along with Mirasol Resources Ltd. (CVE:MRZ) will no doubt be intrigued by the recent purchase of shares by John Tognetti, Independent Director of the company, who spent a stonking CA$1.0m on stock at an average price of CA$0.45. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 13%.
Check out our latest analysis for Mirasol Resources
Mirasol Resources Insider Transactions Over The Last Year
In fact, the recent purchase by John Tognetti was the biggest purchase of Mirasol Resources shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.40). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Mirasol Resources insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$0.51. This is nice to see since it implies that insiders might see value around current prices. 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!
Mirasol Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
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. Mirasol Resources insiders own about CA$11m 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.
So What Do The Mirasol Resources Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Mirasol Resources insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Mirasol Resources (2 are a bit unpleasant!) that we believe deserve your full attention.