Finlay Minerals Insider Purchases Yet To Pay Off Regardless Of Recent Strength

Insiders who bought CA$505.5k worth of Finlay Minerals Ltd. (CVE:FYL) stock in the last year recovered part of their losses as the stock rose by 40% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling CA$172k.

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.

View our latest analysis for Finlay Minerals

Finlay Minerals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by VP of Corporate Relations & Director Ilona Lindsay for CA$500k worth of shares, at about CA$0.06 per share. That means that even when the share price was higher than CA$0.035 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Finlay Minerals insiders were buying shares, but not selling. They paid about CA$0.053 on average. This is nice to see since it implies that insiders might see value around current prices. 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!

Finlay Minerals 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.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Finlay Minerals insiders own 44% of the company, worth about CA$1.2m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Finlay Minerals Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Finlay Minerals insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Finlay Minerals. At Simply Wall St, we've found that Finlay Minerals has 6 warning signs (5 are potentially serious!) that deserve your attention before going any further with your analysis.

But note: Finlay Minerals 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 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.