Black Mammoth Metals Loses CA$3.1m Market Value But Insiders See Windfall Of CA$542k

Insiders who bought Black Mammoth Metals Corporation (CVE:BMM) stock lover the last 12 months are probably not as affected by last week’s 12% loss. Even after accounting for the recent loss, the CA$360.0k worth of stock purchased by them is now worth CA$902.0k or in other words, their investment continues to give good returns.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Black Mammoth Metals

The Last 12 Months Of Insider Transactions At Black Mammoth Metals

The insider Olivier Tielens made the biggest insider purchase in the last 12 months. That single transaction was for CA$300k worth of shares at a price of CA$0.50 each. Even though the purchase was made at a significantly lower price than the recent price (CA$0.82), we still think insider buying is a positive. 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.

In the last twelve months Black Mammoth Metals insiders were buying shares, but not selling. The average buy price was around CA$0.33. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Black Mammoth Metals insiders own 42% of the company, currently worth about CA$9.7m 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.

So What Does This Data Suggest About Black Mammoth Metals Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Black Mammoth Metals insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Black Mammoth Metals. For example, Black Mammoth Metals has 5 warning signs (and 4 which are concerning) we think you should know about.

Of course Black Mammoth Metals 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.