In This Article:
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 (TSE: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 do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Collective Mining
Collective Mining Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive Chairman Ari Sussman for CA$78k worth of shares, at about CA$3.10 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$4.62), 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 total, Collective Mining insiders bought more than they sold over the last year. 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!
Collective Mining is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Collective Mining Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Collective Mining. In total, insiders bought CA$220k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does Collective Mining 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Collective Mining insiders own about CA$107m worth of shares. That equates to 33% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Collective Mining Insiders?
It's certainly positive to see the recent insider purchases. 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. When combined with notable insider ownership, these factors suggest Collective Mining insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 4 warning signs for Collective Mining (of which 2 shouldn't be ignored!) you should know about.