Southern Hemisphere Mining Reaches AU$17m Market Cap Benefiting Insider Stock Buying

Insiders who bought Southern Hemisphere Mining Limited (ASX:SUH) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$2.4m as a result of the stock's 17% gain over the same period. In other words, the original AU$233.4k purchase is now worth AU$422.4k.

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.

View our latest analysis for Southern Hemisphere Mining

The Last 12 Months Of Insider Transactions At Southern Hemisphere Mining

Over the last year, we can see that the biggest insider purchase was by insider Jay Hughes for AU$177k worth of shares, at about AU$0.015 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.028. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Southern Hemisphere Mining insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Southern Hemisphere 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.

Does Southern Hemisphere Mining Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 28% of Southern Hemisphere Mining shares, worth about AU$4.6m. 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 Does This Data Suggest About Southern Hemisphere Mining Insiders?

The fact that there have been no Southern Hemisphere Mining insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in Southern Hemisphere Mining and we see no evidence to suggest they are worried about the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 6 warning signs for Southern Hemisphere Mining (4 are significant!) that we believe deserve your full attention.

But note: Southern Hemisphere 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.