Insiders See US$6.79m Investment In Jaguar Mining Jump Last Week

Insiders who bought Jaguar Mining Inc. (TSE:JAG) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$30m as a result of the stock's 10% gain over the same period. In other words, the original US$6.79m purchase is now worth US$9.87m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Jaguar Mining Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Eric Sprott bought CA$2.8m worth of shares at a price of CA$2.85 per share. We do like to see buying, but this purchase was made at well below the current price of CA$4.12. 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.

Happily, we note that in the last year insiders paid CA$6.8m for 2.39m shares. But insiders sold 5.75k shares worth CA$30k. In total, Jaguar Mining insiders bought more than they sold over the last year. 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!

Check out our latest analysis for Jaguar Mining

Jaguar Mining is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Jaguar Mining Insiders Bought Stock Recently

It's good to see that Jaguar Mining insiders have made notable investments in the company's shares. Overall, two insiders shelled out CA$676k for shares in the company -- and none sold. That shows some optimism about the company's future.

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. Jaguar Mining insiders own 50% of the company, currently worth about CA$165m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Jaguar Mining Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Jaguar Mining insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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. Every company has risks, and we've spotted 1 warning sign for Jaguar Mining you should know about.

Of course Jaguar Mining may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.