Cohiba Minerals Insider Confidence Rewarded, Stock Hits AU$11m Market Cap

Cohiba Minerals Limited (ASX:CHK) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 20% resulting in a AU$4.4m addition to the company’s market value. As a result, their original purchase of AU$355.0k worth of stock is now worth AU$840.8k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Cohiba Minerals

Cohiba Minerals Insider Transactions Over The Last Year

Notably, that recent purchase by Fadi Diab is the biggest insider purchase of Cohiba Minerals shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.003. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Cohiba Minerals insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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.

Cohiba Minerals Insiders Bought Stock Recently

Over the last quarter, Cohiba Minerals insiders have spent a meaningful amount on shares. In total, insiders bought AU$330k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Does Cohiba Minerals Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Cohiba Minerals insiders own about AU$1.7m worth of shares. That equates to 16% of the company. 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 Cohiba Minerals Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Cohiba Minerals insiders are well aligned, and that they may think the share price is too low. 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. To assist with this, we've discovered 5 warning signs that you should run your eye over to get a better picture of Cohiba Minerals.

But note: Cohiba Minerals 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.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.