Insider Stock Buyers At Medallion Metals Recouped Some Losses This Week

Insiders who bought AU$165.5k worth of Medallion Metals Limited (ASX:MM8) stock in the last year recovered part of their losses as the stock rose by 10.0% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling AU$41k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Medallion Metals

Medallion Metals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Ian Junk for AU$114k worth of shares, at about AU$0.13 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.066). 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.

In the last twelve months Medallion Metals insiders were buying shares, but not selling. The average buy price was around AU$0.087. These transactions suggest that insiders have considered the current price attractive. 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!

Medallion Metals 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.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From our data, it seems that Medallion Metals insiders own 14% of the company, worth about AU$2.9m. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Medallion Metals Insiders?

It doesn't really mean much that no insider has traded Medallion Metals shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Medallion Metals insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Medallion Metals. Case in point: We've spotted 5 warning signs for Medallion Metals you should be aware of, and 2 of these shouldn't be ignored.

But note: Medallion Metals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.