Several Insiders Invested In Mt Malcolm Mines Flagging Positive News

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Mt Malcolm Mines NL's (ASX:M2M) instance, it's good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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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$234k worth of shares at a price of AU$0.023 per share. That implies that an insider found the current price of AU$0.025 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Mt Malcolm Mines share holders is that insiders were buying at near the current price.

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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Mt Malcolm Mines

Mt Malcolm Mines is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Mt Malcolm Mines Insiders Bought Stock Recently

Over the last quarter, Mt Malcolm Mines insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought AU$258k worth of shares. This could be interpreted as suggesting a positive outlook.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Mt Malcolm Mines insiders own about AU$3.2m worth of shares (which is 41% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Mt Malcolm Mines Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Mt Malcolm Mines insiders are well aligned, and quite possibly think the share price is too low. 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. For example - Mt Malcolm Mines has 3 warning signs we think you should be aware of.

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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.