Insider Buyers Lose AU$173k As Mount Burgess Mining Sheds AU$649k

The recent 33% drop in Mount Burgess Mining N.L.'s (ASX:MTB) stock could come as a blow to insiders who purchased AU$239.0k worth of stock at an average buy price of AU$0.0036 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$66.0k which is not ideal.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Mount Burgess Mining

Mount Burgess Mining Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Peter Proksa for AU$184k worth of shares, at about AU$0.0041 per share. That means that an insider was happy to buy shares at above the current price of AU$0.001. 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Peter Proksa was the only individual insider to buy during the last year.

Peter Proksa purchased 66.00m shares over the year. The average price per share was AU$0.0036. 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!

Mount Burgess Mining 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.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 32% of Mount Burgess Mining shares, worth about AU$416k. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Mount Burgess Mining Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Mount Burgess Mining shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Mount Burgess Mining and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mount Burgess Mining. To that end, you should learn about the 6 warning signs we've spotted with Mount Burgess Mining (including 5 which don't sit too well with us).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com