Insiders See AU$3.04m Investment In Viridis Mining and Minerals Jump Last Week

Insiders who bought Viridis Mining and Minerals Limited (ASX:VMM) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$10m as a result of the stock's 15% gain over the same period. In other words, the original AU$3.04m purchase is now worth AU$5.13m.

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.

View our latest analysis for Viridis Mining and Minerals

The Last 12 Months Of Insider Transactions At Viridis Mining and Minerals

Over the last year, we can see that the biggest insider purchase was by insider Sufian Ahmad for AU$1.2m worth of shares, at about AU$0.95 per share. We do like to see buying, but this purchase was made at well below the current price of AU$1.22. 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.

Viridis Mining and Minerals insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around AU$0.72. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Viridis Mining and Minerals Insiders Bought Stock Recently

It's good to see that Viridis Mining and Minerals insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$1.1m worth of shares. This is a positive in our book as it implies some confidence.

Insider Ownership Of Viridis Mining and Minerals

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. Insiders own 39% of Viridis Mining and Minerals shares, worth about AU$30m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Viridis Mining and Minerals Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Viridis Mining and Minerals we think they are probably pretty confident of a bright future. While it's good to be aware of 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. Be aware that Viridis Mining and Minerals is showing 4 warning signs in our investment analysis, and 3 of those are potentially serious...

But note: Viridis Mining and Minerals 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.

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