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Insiders who acquired UK£95.0k worth of Molten Ventures Plc's (LON:GROW) stock at an average price of UK£3.06 in the past 12 months may be dismayed by the recent 14% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth UK£71.6k, which is not great.
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.
The Last 12 Months Of Insider Transactions At Molten Ventures
Over the last year, we can see that the biggest insider purchase was by CEO & Non-Independent Executive Director Benjamin Wilkinson for UK£50k worth of shares, at about UK£3.06 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£2.31). 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. In our view, the price an insider pays for shares is very important. 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.
Molten Ventures insiders may have bought shares in the last year, but they didn't sell any. 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!
View our latest analysis for Molten Ventures
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).
Insiders At Molten Ventures Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Molten Ventures. Overall, two insiders shelled out UK£55k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Does Molten Ventures Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own UK£2.9m worth of Molten Ventures stock, about 0.7% of the company. We prefer to see high levels of insider ownership.