Insiders who purchased US$354k worth of Adventus Mining Corporation (CVE:ADZN) shares over the past year recouped some of their losses after price gained 17% last week. However, total losses seen by insiders are still US$42k but in since the time of purchase.
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.
The Last 12 Months Of Insider Transactions At Adventus Mining
In the last twelve months, the biggest single purchase by an insider was when Independent Chairman & Lead Independent Director Mark Wellings bought CA$77k worth of shares at a price of CA$0.78 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.49). 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. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Adventus Mining insiders bought shares during the last year, they didn't sell. The average buy price was around CA$0.56. I'd consider this a positive as it suggests insiders see value at around the current 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. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Adventus Mining Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Adventus Mining. Overall, seven insiders shelled out CA$95k for shares in the company -- and none sold. That shows some optimism about the company's future.
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. Based on our data, Adventus Mining insiders have about 3.2% of the stock, worth approximately CA$2.6m. We prefer to see high levels of insider ownership.
So What Do The Adventus Mining Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Adventus Mining insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Adventus Mining. At Simply Wall St, we've found that Adventus Mining has 5 warning signs (2 are significant!) that deserve your attention before going any further with your analysis.
Of course Adventus Mining may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here