Whilst it may not be a huge deal, we thought it was good to see that the Capstone Mining Corp. (TSE:CS) Vice President of Strategy & Capital Markets, Jerrold Annett, recently bought CA$106k worth of stock, for CA$2.05 per share. Although the purchase is not a big one, increasing their shareholding by only 1.3%, it can be interpreted as a good sign.
View our latest analysis for Capstone Mining
Capstone Mining Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Dale Peniuk, sold CA$153k worth of shares at a price of CA$1.44 per share. That means that even when the share price was below the current price of CA$2.27, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 32% of Dale Peniuk's stake. The only individual insider seller over the last year was Dale Peniuk.
Over the last year, we can see that insiders have bought 121.26k shares worth CA$149k. But insiders sold 106.35k shares worth CA$153k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Does Capstone Mining 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Capstone Mining insiders own 3.0% of the company, worth about CA$29m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Capstone Mining Tell Us?
Insider selling has just outweighed insider buying in the last three months. But the net divestment is not enough to concern us at all. Recent insider selling makes us a little nervous, in light of the broader picture of Capstone Mining insider transactions. The modest level of insider ownership is, at least, some comfort. While we like knowing 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. While conducting our analysis, we found that Capstone Mining has 2 warning signs and it would be unwise to ignore these.