Lara Exploration Insiders Lose Out As Stock Sinks To CA$0.66

Insiders who acquired CA$301k worth of Lara Exploration Ltd.'s (CVE:LRA) stock at an average price of CA$0.76 in the past 12 months may be dismayed by the recent 11% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth CA$263k, which is not great.

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.

See our latest analysis for Lara Exploration

Lara Exploration Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Vice President of Corporate Development Christopher MacIntyre for CA$176k worth of shares, at about CA$0.76 per share. That means that an insider was happy to buy shares at above the current price of CA$0.66. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Christopher MacIntyre was the only individual insider to buy shares in the last twelve months.

Christopher MacIntyre bought 398.00k shares over the last 12 months at an average price of CA$0.76. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Lara Exploration

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 16% of Lara Exploration shares, worth about CA$4.8m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Lara Exploration Tell Us?

It doesn't really mean much that no insider has traded Lara Exploration shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Lara Exploration and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 3 warning signs (2 make us uncomfortable!) that you ought to be aware of before buying any shares in Lara Exploration.

But note: Lara Exploration 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.