Need To Know: Maverix Metals Inc. (TSE:MMX) Insiders Have Been Buying Shares

We often see insiders buying up shares in companies that perform well over the long term. 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 Maverix Metals Inc. (TSE:MMX), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.

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. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Maverix Metals

The Last 12 Months Of Insider Transactions At Maverix Metals

In the last twelve months, the biggest single purchase by an insider was when CEO & Director Daniel O'Flaherty bought CA$189k worth of shares at a price of CA$4.19 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$7.04. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid CA$644k for 141.67k shares. But they sold 22.50k shares for CA$154k. Overall, Maverix Metals insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Maverix Metals 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.

Maverix Metals Insiders Are Selling The Stock

The last three months saw some Maverix Metals insider selling. CA$73k worth of shares were sold by Independent Chairman of the Board Geoffrey Burns. But CA$49k was spent on buying, too, . 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.

Insider Ownership

Many investors like to check how much of a company is owned by 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. Maverix Metals insiders own about CA$93m worth of shares. That equates to 9.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Maverix Metals 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 Maverix Metals and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Maverix Metals has 3 warning signs and it would be unwise to ignore them.

But note: Maverix Metals 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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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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