Insiders At Eagle Mountain Mining See Good Returns After Buying Stock Worth AU$3.19m

Insiders who bought Eagle Mountain Mining Limited (ASX:EM2) in the last 12 months may probably not pay attention to the stock's recent 10.0% drop. After taking the recent loss into consideration, the AU$3.19m worth of stock they bought is now worth AU$3.58m, indicating that their investment yielded a positive return.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Eagle Mountain Mining Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Charles Bass bought AU$3.0m worth of shares at a price of AU$0.008 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.009. 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.

While Eagle Mountain Mining insiders bought shares during the last year, they didn't sell. 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 Eagle Mountain Mining

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).

Insider Ownership Of Eagle Mountain Mining

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Eagle Mountain Mining insiders own about AU$4.9m worth of shares (which is 48% 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 Do The Eagle Mountain Mining Insider Transactions Indicate?

The fact that there have been no Eagle Mountain Mining insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Eagle Mountain Mining insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 6 warning signs for Eagle Mountain Mining you should be aware of.

Of course Eagle Mountain 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 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.