Brian Gilbertson Is The Independent Non-Executive Chairman of Jupiter Mines Limited (ASX:JMS) And They Just Picked Up 87% More Shares

By
Simply Wall St
Published
November 11, 2020

Those following along with Jupiter Mines Limited (ASX:JMS) will no doubt be intrigued by the recent purchase of shares by Brian Gilbertson, Independent Non-Executive Chairman of the company, who spent a stonking AU$2.7m on stock at an average price of AU$0.27. That increased their holding by a full 87%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

Check out our latest analysis for Jupiter Mines

Jupiter Mines Insider Transactions Over The Last Year

Notably, that recent purchase by Independent Non-Executive Chairman Brian Gilbertson was not the only time they bought Jupiter Mines shares this year. They previously made an even bigger purchase of AU$2.9m worth of shares at a price of AU$0.29 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.28). 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. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Brian Gilbertson was the only individual insider to buy during the last year.

Brian Gilbertson bought a total of 21.48m shares over the year at an average price of AU$0.28. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

ASX:JMS Insider Trading Volume November 11th 2020

Jupiter Mines is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Jupiter Mines

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Jupiter Mines insiders own about AU$26m worth of shares. That equates to 4.9% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Jupiter Mines Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Jupiter Mines we think they are probably pretty confident of a bright future. 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. In terms of investment risks, we've identified 1 warning sign with Jupiter Mines and understanding it should be part of your investment process.

Of course Jupiter Mines 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.

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This article by Simply Wall St is general in nature. 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.
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