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Quite a few insiders have dramatically grown their holdings in Meridian Mining UK Societas (TSE:MNO) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Meridian Mining UK Societas Insider Transactions Over The Last Year
The insider Henry Maxey made the biggest insider purchase in the last 12 months. That single transaction was for CA$3.5m worth of shares at a price of CA$0.35 each. We do like to see buying, but this purchase was made at well below the current price of CA$0.65. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months Meridian Mining UK Societas insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Meridian Mining UK Societas
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).
Meridian Mining UK Societas Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Meridian Mining UK Societas. Overall, three insiders shelled out CA$89k for shares in the company -- and none sold. That shows some optimism about the company's future.
Does Meridian Mining UK Societas Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Meridian Mining UK Societas insiders own about CA$35m worth of shares. That equates to 15% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Meridian Mining UK Societas Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Meridian Mining UK Societas insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Meridian Mining UK Societas and understanding these should be part of your investment process.