Insiders Give Up AU$81k As Mt Malcolm Mines Stock Drops To AU$0.023

The recent price decline of 12% in Mt Malcolm Mines NL's (ASX:M2M) stock may have disappointed insiders who bought AU$409.3k worth of shares at an average price of AU$0.029 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth AU$328.2k, which is not what they expected.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Mt Malcolm Mines

Mt Malcolm Mines Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when MD & Non-Independent Executive Director Trevor Dixon bought AU$287k worth of shares at a price of AU$0.03 per share. That means that even when the share price was higher than AU$0.023 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Mt Malcolm Mines 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

Mt Malcolm Mines 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.

Mt Malcolm Mines Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Mt Malcolm Mines. Overall, four insiders shelled out AU$89k for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Mt Malcolm Mines insiders own 49% of the company, worth about AU$1.7m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Mt Malcolm Mines Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Mt Malcolm Mines. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mt Malcolm Mines. Our analysis shows 4 warning signs for Mt Malcolm Mines (3 are a bit concerning!) and we strongly recommend you look at these before investing.

Of course Mt Malcolm 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 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.