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Insiders who bought CA$90.0k worth of PPX Mining Corp.'s (CVE:PPX) stock at an average buy price of CA$0.045 over the last year may be disappointed by the recent 14% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth CA$60.0k which is not ideal.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for PPX Mining
PPX Mining Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive Chairman Brian Imrie for CA$90k worth of shares, at about CA$0.045 per share. That means that even when the share price was higher than CA$0.03 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Brian Imrie.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
PPX Mining 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.
Insider Ownership Of PPX Mining
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. PPX Mining insiders own about CA$10m worth of shares (which is 42% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At PPX Mining Tell Us?
It doesn't really mean much that no insider has traded PPX Mining shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like PPX Mining insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that PPX Mining has 5 warning signs (3 are concerning!) that deserve your attention before going any further with your analysis.