Stock Analysis

As Calibre Mining Corp. (TSE:CXB) hits CA$537m market cap, insiders may be dismayed about not purchasing higher quantities

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Calibre Mining Corp. (TSE:CXB) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 10%, resulting in a CA$50m rise in the company's market capitalisation. Put another way, the original US$600k acquisition is now worth US$759k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Calibre Mining

Calibre Mining Insider Transactions Over The Last Year

There wasn't any very large single transaction over the last year, but we can still observe some trading.

In the last twelve months insiders purchased 637.91k shares for CA$600k. But they sold 87.06k shares for CA$98k. Overall, Calibre Mining insiders were net buyers during the last year. Their average price was about CA$0.94. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price of CA$1.19. 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!

TSX:CXB Insider Trading Volume March 19th 2023

Calibre 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.

Insiders At Calibre Mining Have Sold Stock Recently

The last three months saw some Calibre Mining insider selling. In total, insiders sold CA$98k worth of shares in that time. But at least we saw CA$76k worth of buying. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Does Calibre Mining Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 3.2% of Calibre Mining shares, worth about CA$17m. 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 Calibre Mining Insiders?

Insider selling has just outweighed insider buying in the last three months. But the difference isn't enough to have us worried. However, our analysis of transactions over the last year is heartening. Insiders own shares in Calibre Mining and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Calibre Mining. At Simply Wall St, we've found that Calibre Mining has 3 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

But note: Calibre 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, but not derivative transactions.

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