Cleghorn Minerals Insiders May Regret Not Buying More, Market Cap Hits CA$1.7m

Insiders who bought Cleghorn Minerals Ltd. (CVE:CZZ) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$345k as a result of the stock's 20% gain over the same period. In other words, the original CA$125.0k purchase is now worth CA$150.0k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Cleghorn Minerals

The Last 12 Months Of Insider Transactions At Cleghorn Minerals

Over the last year, we can see that the biggest insider purchase was by Independent Director Joseph Groia for CA$70k worth of shares, at about CA$0.05 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.06. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Cleghorn Minerals insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Cleghorn Minerals is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Cleghorn Minerals

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. It's great to see that Cleghorn Minerals insiders own 45% of the company, worth about CA$780k. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Cleghorn Minerals Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Cleghorn Minerals insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cleghorn Minerals. For example, Cleghorn Minerals has 5 warning signs (and 4 which make us uncomfortable) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.