Insider Stock Buying Reaches US$2.79m On Lundin Mining

In the last year, multiple insiders have substantially increased their holdings of Lundin Mining Corporation (TSE:LUN) stock, indicating that insiders' optimism about the company's prospects has increased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Lundin Mining

The Last 12 Months Of Insider Transactions At Lundin Mining

The Chairman of the Board Adam Lundin made the biggest insider purchase in the last 12 months. That single transaction was for CA$993k worth of shares at a price of CA$13.23 each. That implies that an insider found the current price of CA$13.84 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

Over the last year, we can see that insiders have bought 214.00k shares worth CA$2.8m. But they sold 2.99k shares for CA$40k. In the last twelve months there was more buying than selling by Lundin Mining insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Lundin Mining Have Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Lundin Mining. We can see that President Jack O. Lundin paid CA$816k for shares in the company. On the other hand, insider Annie Laurenson netted CA$10k by selling. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Insider Ownership Of Lundin Mining

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Lundin Mining insiders own about CA$32m worth of shares. That equates to 0.3% of the company. 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 Do The Lundin Mining Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Lundin Mining we think they are probably pretty confident of a bright future. 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. For example - Lundin Mining has 2 warning signs we think you should be aware of.

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.

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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.