Whilst it may not be a huge deal, we thought it was good to see that the Bear Creek Mining Corporation (CVE:BCM) Independent Chairman, Catherine McLeod-Seltzer, recently bought CA$99k worth of stock, for CA$0.99 per share. Although the purchase is not a big one, increasing their shareholding by only 6.9%, it can be interpreted as a good sign.
Bear Creek Mining Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Chairman Catherine McLeod-Seltzer was not the only time they bought Bear Creek Mining shares this year. Earlier in the year, they paid CA$1.29 per share in a CA$188k purchase. That means that even when the share price was higher than CA$0.99 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Bear Creek Mining insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Our data suggests Bear Creek Mining insiders own 2.7% of the company, worth about CA$3.4m. We prefer to see high levels of insider ownership.
So What Do The Bear Creek Mining Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Bear Creek Mining insiders are expecting a bright 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. Our analysis shows 4 warning signs for Bear Creek Mining (2 are a bit unpleasant!) and we strongly recommend you look at these before investing.
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. 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.