Galena Mining Up 18%, Insiders Still Down After AU$4.0m Purchase

Some of the losses seen by insiders who purchased AU$4.0m worth of Galena Mining Limited (ASX:G1A) shares over the past year were recovered after the stock increased by 18% over the past week. However, total losses seen by insiders are still AU$448k 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.

View our latest analysis for Galena Mining

Galena Mining Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Timothy Roberts bought AU$2.8m worth of shares at a price of AU$0.15 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.13). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Galena Mining 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!

Galena Mining is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Galena Mining Have Bought Stock Recently

It's good to see that Galena Mining insiders have made notable investments in the company's shares. Overall, three insiders shelled out AU$441k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Does Galena Mining Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Galena Mining insiders own 23% of the company, worth about AU$22m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Galena Mining Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Galena Mining shares, given these transactions (along with notable insider ownership of the company). 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 Galena Mining you should be aware of, and 3 of these are concerning.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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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.