MetalQuest Mining Insider Confidence Rewarded, Stock Hits CA$6.0m Market Cap

MetalQuest Mining Inc. (CVE:MQM) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 20%, resulting in a CA$1.2m rise in the company's market capitalisation, translating to a gain of 210% on their initial investment. Put another way, the original CA$180.2k acquisition is now worth CA$559.1k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At MetalQuest Mining

The Chairman & CEO Harry Barr made the biggest insider purchase in the last 12 months. That single transaction was for CA$150k worth of shares at a price of CA$0.07 each. We do like to see buying, but this purchase was made at well below the current price of CA$0.21. 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.

While MetalQuest Mining insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for MetalQuest Mining

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does MetalQuest Mining Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. MetalQuest Mining insiders own about CA$1.9m worth of shares. That equates to 32% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The MetalQuest Mining Insider Transactions Indicate?

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. Insiders do have a stake in MetalQuest Mining and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MetalQuest Mining. Case in point: We've spotted 4 warning signs for MetalQuest Mining you should be aware of, and 3 of these make us uncomfortable.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.