Stock Analysis

Ubique Minerals Limited's (CSE:UBQ) recent CA$3.3m market cap decline means a loss of CA$33k for insiders who bought this year

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The recent 22% drop in Ubique Minerals Limited's (CSE:UBQ) stock could come as a blow to insiders who purchased CA$639k worth of stock at an average buy price of CA$0.15 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth CA$606k, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Ubique Minerals

Ubique Minerals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Interim CEO & Director Vilhjalmur Vilhjalmsson for CA$357k worth of shares, at about CA$0.15 per share. That means that even when the share price was higher than CA$0.14 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 4.33m shares for CA$639k. But they sold 163.38k shares for CA$12k. Overall, Ubique Minerals insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

CNSX:UBQ Insider Trading Volume March 17th 2023

Ubique Minerals 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.

Ubique Minerals Insiders Bought Stock Recently

We saw some Ubique Minerals insider buying shares in the last three months. Insiders bought CA$32k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership Of Ubique Minerals

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Ubique Minerals insiders own 36% of the company, worth about CA$4.1m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Ubique Minerals Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Ubique Minerals insiders are doubting the company, and they do own shares. 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. When we did our research, we found 5 warning signs for Ubique Minerals (3 don't sit too well with us!) that we believe deserve your full attention.

But note: Ubique 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, but not derivative transactions.

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