Investors who take an interest in Prime Mining Corp. (CVE:PRYM) should definitely note that the Executive Advisor & Director, Andrew Bowering, recently paid CA$1.50 per share to buy CA$300k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 3.3%.
Check out our latest analysis for Prime Mining
Prime Mining Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Pierre Lassonde bought CA$3.3m worth of shares at a price of CA$4.20 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$1.89). 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 generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Prime Mining insiders bought shares during the last year, they didn't sell. The average buy price was around CA$2.26. This is nice to see since it implies that insiders might see value around current prices. 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!
Prime Mining is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Prime Mining
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. Prime Mining insiders own about CA$50m worth of shares. That equates to 21% 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 Prime Mining Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Prime 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. Be aware that Prime Mining is showing 4 warning signs in our investment analysis, and 2 of those can't be ignored...