Miramar Resources Insiders Recover Some Losses, Which Stand At AU$125k

Some of the losses seen by insiders who purchased AU$363.1k worth of Miramar Resources Limited (ASX:M2R) shares over the past year were recovered after the stock increased by 10.0% over the past week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled AU$125k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Miramar Resources

The Last 12 Months Of Insider Transactions At Miramar Resources

In the last twelve months, the biggest single purchase by an insider was when insider Claudio Franca bought AU$160k worth of shares at a price of AU$0.016 per share. That means that even when the share price was higher than AU$0.011 (the recent price), an insider wanted to purchase shares. 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. 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.

Miramar Resources insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Miramar Resources is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Miramar Resources Have Bought Stock Recently

It's good to see that Miramar Resources insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$258k worth of shares. This is a positive in our book as it implies some confidence.

Insider Ownership Of Miramar Resources

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. Insiders own 30% of Miramar Resources shares, worth about AU$619k. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Miramar Resources Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Miramar Resources shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 5 warning signs for Miramar Resources that deserve your attention before buying any shares.

Of course Miramar Resources 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.