Inventus Mining Insiders Land Bargain With Gains Of CA$2.2m

Insiders who purchased Inventus Mining Corp. (CVE:IVS) shares in the past 12 months are unlikely to be deeply impacted by the stock's 15% decline over the past week. After accounting for the recent loss, the CA$5.07m worth of shares they purchased is now worth CA$7.31m, suggesting a good return on their investment.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Inventus Mining

The insider Eric Sprott made the biggest insider purchase in the last 12 months. That single transaction was for CA$3.8m worth of shares at a price of CA$0.16 each. We do like to see buying, but this purchase was made at well below the current price of CA$0.20. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Inventus Mining insiders were buying shares, but not selling. The average buy price was around CA$0.14. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Inventus Mining

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Inventus Mining Insiders Bought Stock Recently

Over the last quarter, Inventus Mining insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought CA$4.9m worth of shares. This is a positive in our book as it implies some confidence.

Insider Ownership Of Inventus Mining

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Inventus Mining insiders own 32% of the company, worth about CA$16m. 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 Do The Inventus Mining Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Inventus Mining we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Inventus Mining. At Simply Wall St, we've found that Inventus Mining has 4 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

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.