Mount Burgess Mining's AU$1.0m Market Cap Fall Books Insider Losses

Insiders who acquired AU$239.0k worth of Mount Burgess Mining N.L.'s (ASX:MTB) stock at an average price of AU$0.0036 in the past 12 months may be dismayed by the recent 33% price decline. 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$132.0k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Mount Burgess Mining

Mount Burgess Mining Insider Transactions Over The Last Year

The insider Peter Provsa made the biggest insider purchase in the last 12 months. That single transaction was for AU$184k worth of shares at a price of AU$0.0041 each. That means that even when the share price was higher than AU$0.002 (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. 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 Provsa was the only individual insider to buy during the last year.

Peter Provsa bought 66.00m shares over the last 12 months at an average price of AU$0.0036. 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!

Mount Burgess 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 Of Mount Burgess Mining

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. It appears that Mount Burgess Mining insiders own 40% of the company, worth about AU$833k. 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. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Mount Burgess Mining insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mount Burgess Mining. When we did our research, we found 7 warning signs for Mount Burgess Mining (6 shouldn't be ignored!) that we believe deserve your full attention.

But note: Mount Burgess Mining 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.