Should You Take Comfort From Insider Transactions At Albert Mining Inc. (CVE:AIIM)?

We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Albert Mining Inc. (CVE:AIIM), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’

See our latest analysis for Albert Mining

The Last 12 Months Of Insider Transactions At Albert Mining

Over the last year, we can see that the biggest insider purchase was by President Michel Fontaine for CA$120k worth of shares, at about CA$0.05 per share. So it’s clear an insider wanted to buy, even at a higher price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. It’s not at all bad to see insiders buy shares at or above current prices.

Over the last year, we can see that insiders have bought 5.45m shares worth CA$287k. In total, Albert Mining insiders bought more than they sold over the last year. Their average price was about CA$0.053. These transactions suggest that insiders have considered the current price of CA$0.03 attractive. You can see a visual depiction of insider transactions over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

TSXV:AIIM Insider Trading December 13th 18
TSXV:AIIM Insider Trading December 13th 18

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Have Albert Mining Insiders Traded Recently?

There was some insider buying at Albert Mining over the last quarter. Chairman of the Board AndrĂ© Audet bought CA$7.3k worth of shares in that time. It’s great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Does Albert 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Albert Mining insiders own 15% of the company, currently worth about CA$282k based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Albert Mining Insider Transactions Indicate?

Our data shows a little more insider buying than selling in the last three months. But the difference isn’t much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we’d be more comfortable if they owned more Albert Mining stock. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

But note: Albert Mining may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.