Insiders Buying S2 Minerals Might Wish They Invested More, Stock Gains 10.0%

Insiders who bought S2 Minerals Inc. (CSE:STWO) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$598k as a result of the stock's 10.0% gain over the same period. As a result, their original purchase of CA$476.0k worth of stock is now worth CA$1.09m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

S2 Minerals Insider Transactions Over The Last Year

The Executive Chairman John Sheridan made the biggest insider purchase in the last 12 months. That single transaction was for CA$420k worth of shares at a price of CA$0.12 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.28. 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.

While S2 Minerals insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for S2 Minerals

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.

Does S2 Minerals Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. S2 Minerals insiders own about CA$3.5m worth of shares (which is 56% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At S2 Minerals Tell Us?

The fact that there have been no S2 Minerals insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, S2 Minerals insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing S2 Minerals. For example, S2 Minerals has 4 warning signs (and 3 which shouldn't be ignored) we think you should know about.

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.

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

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.