Are Insiders Buying Ivanhoe Mines Ltd. (TSE:IVN) Stock?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Ivanhoe Mines Ltd. (TSE:IVN), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for Ivanhoe Mines

Ivanhoe Mines Insider Transactions Over The Last Year

The Founder & Executive Co-Chairman Robert Martin Friedland made the biggest insider purchase in the last 12 months. That single transaction was for CA$706k worth of shares at a price of CA$3.55 each. We do like to see buying, but this purchase was made at well below the current price of CA$6.16. 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.

Over the last year, we can see that insiders have bought 1.53m shares worth CA$4.3m. But insiders sold 227.05k shares worth CA$1.1m. In the last twelve months there was more buying than selling by Ivanhoe Mines insiders. They paid about CA$2.77 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

Ivanhoe Mines is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Ivanhoe Mines Insiders Bought Stock Recently

It's good to see that Ivanhoe Mines insiders have made notable investments in the company's shares. We can see that Lead Independent Director Tadeu Carneiro paid CA$218k for shares in the company. No-one sold. That shows some optimism about the company's future.

Does Ivanhoe Mines 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. Ivanhoe Mines insiders own about CA$1.0b worth of shares (which is 14% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Ivanhoe Mines Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Ivanhoe Mines. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ivanhoe Mines. Every company has risks, and we've spotted 1 warning sign for Ivanhoe Mines 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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