Insiders At Millennial Potash See Good Returns After Buying Stock Worth CA$4.23m

Insiders who bought Millennial Potash Corp. (CVE:MLP) in the last 12 months may probably not pay attention to the stock's recent 17% drop. After taking the recent loss into consideration, the CA$4.23m worth of stock they bought is now worth CA$9.20m, indicating that their investment yielded a positive return.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Millennial Potash

In the last twelve months, the biggest single purchase by an insider was when insider Ross Jennings bought CA$2.1m worth of shares at a price of CA$0.30 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.62. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 14.84m shares for CA$4.2m. But insiders sold 500.00k shares worth CA$125k. In total, Millennial Potash insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Millennial Potash

Millennial Potash is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Millennial Potash Insiders Bought Stock Recently

Over the last quarter, Millennial Potash insiders have spent a meaningful amount on shares. We can see that insider Ross Jennings paid CA$2.1m for shares in the company. No-one sold. This makes one think the business has some good points.

Insider Ownership Of Millennial Potash

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Millennial Potash insiders own 43% of the company, currently worth about CA$22m 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 Millennial Potash Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Millennial Potash insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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 that end, you should learn about the 4 warning signs we've spotted with Millennial Potash (including 3 which don't sit too well with us).

But note: Millennial Potash 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.