Whilst it may not be a huge deal, we thought it was good to see that the Morien Resources Corp. (CVE:MOX) Independent Director, John Byrne, recently bought CA$127k worth of stock, for CA$0.42 per share. While we’re hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 16.9%.
The Last 12 Months Of Insider Transactions At Morien Resources
In the last twelve months, the biggest single purchase by an insider was when Executive Chairman John Philip Budreski bought CA$241k worth of shares at a price of CA$0.25 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.41. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.
In the last twelve months insiders purchased 1.5m shares for CA$474k. But they sold 100k for CA$48k. Overall, Morien Resources insiders were net buyers last year. Their average price was about CA$0.31. We don’t deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today’s share price. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Insider Ownership of Morien Resources
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 11% of Morien Resources shares, worth about CA$2.4m, according to our data. However, it’s possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Morien Resources Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don’t feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Morien Resources insiders are reasonably well aligned, and optimistic for the future. Along with insider transactions, I recommend checking if Morien Resources is growing revenue. This free chart of historic revenue and earnings should make that easy.
But note: Morien Resources 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, but not derivative transactions.
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