Over the last year, a good number of insiders have significantly increased their holdings in Viridis Mining and Minerals Limited (ASX:VMM). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Viridis Mining and Minerals

Viridis Mining and Minerals Insider Transactions Over The Last Year

The insider Sufian Ahmad made the biggest insider purchase in the last 12 months. That single transaction was for AU$1.2m worth of shares at a price of AU$0.95 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$1.70. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid AU$1.5m for 3.00m shares. But they sold 58.50k shares for AU$60k. Overall, Viridis Mining and Minerals insiders were net buyers during the last year. Their average price was about AU$0.52. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below 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!

Viridis Mining and Minerals is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Viridis Mining and Minerals Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Viridis Mining and Minerals. Specifically, insider Sufian Ahmad bought AU$1.2m worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Viridis Mining and Minerals insiders own about AU$35m worth of shares (which is 42% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Viridis Mining and Minerals Insiders?

It's certainly positive to see the recent insider purchase. 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Viridis Mining and Minerals. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Viridis Mining and Minerals. For instance, we've identified 5 warning signs for Viridis Mining and Minerals (3 are significant) you should be aware of.