Trade Alert: The Executive Director of Mining & Director Of Peel Mining Limited (ASX:PEX), James Simpson, Has Just Spent AU$520k Buying 1,487% More Shares

Potential Peel Mining Limited (ASX:PEX) shareholders may wish to note that the Executive Director of Mining & Director, James Simpson, recently bought AU$520k worth of stock, paying AU$0.17 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 1,487%, potentially signalling some real optimism.

Check out our latest analysis for Peel Mining

The Last 12 Months Of Insider Transactions At Peel Mining

Notably, that recent purchase by James Simpson is the biggest insider purchase of Peel Mining shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of AU$0.27. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Peel Mining 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. By clicking on the graph below, you can see the precise details of each insider transaction!

Peel Mining 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

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. Our data indicates that Peel Mining insiders own about AU$12m worth of shares (which is 13% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Peel Mining Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Peel Mining insiders are well aligned, and that they may think the share price is too low. 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. Be aware that Peel Mining is showing 6 warning signs in our investment analysis, and 2 of those are a bit unpleasant...

Of course Peel Mining 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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