Stock Analysis

Mitre Mining Corporation Limited (ASX:MMC) may have lost AU$1.5m in value but insiders who invested last year have seen gains of around AU$5.9k to date

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Mitre Mining Corporation Limited (ASX:MMC) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 13% decline in the stock price. After taking the recent loss into consideration, the AU$98k worth of stock they bought is now worth AU$104k, indicating that their investment yielded a positive return.

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.

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The Last 12 Months Of Insider Transactions At Mitre Mining

Over the last year, we can see that the biggest insider purchase was by insider Dominic Virgara for AU$98k worth of shares, at about AU$0.22 per share. That implies that an insider found the current price of AU$0.23 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Mitre Mining share holders is that an insider was buying at near the current price. Dominic Virgara was the only individual insider to buy during the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

ASX:MMC Insider Trading Volume March 17th 2023

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

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. Mitre Mining insiders own about AU$2.7m worth of shares. That equates to 28% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Mitre Mining Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Mitre Mining shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Mitre Mining and their transactions don't cause us concern. 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. Every company has risks, and we've spotted 4 warning signs for Mitre Mining (of which 2 can't be ignored!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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