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Even if it's not a huge purchase, we think it was good to see that Richard Hacker, the Non-Executive Director of Chalice Mining Limited (ASX:CHN) recently shelled out AU$100k to buy stock, at AU$1.47 per share. However, it only increased their shares held by 5.6%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for Chalice Mining
Chalice Mining Insider Transactions Over The Last Year
Notably, that recent purchase by Richard Hacker is the biggest insider purchase of Chalice Mining shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$1.53. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months Chalice Mining insiders were buying shares, but not selling. They paid about AU$1.27 on average. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!
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).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Chalice Mining insiders own 14% of the company, worth about AU$83m. 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 Chalice Mining Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Chalice Mining 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. Every company has risks, and we've spotted 2 warning signs for Chalice Mining (of which 1 is concerning!) you should know about.