Independent Director of Mirasol Resources John Tognetti Buys 13% More Shares

Those following along with Mirasol Resources Ltd. (CVE:MRZ) will no doubt be intrigued by the recent purchase of shares by John Tognetti, Independent Director of the company, who spent a stonking CA$1.0m on stock at an average price of CA$0.45. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 13%.

Check out our latest analysis for Mirasol Resources

The Last 12 Months Of Insider Transactions At Mirasol Resources

In fact, the recent purchase by John Tognetti was the biggest purchase of Mirasol Resources shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of CA$0.40. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Mirasol Resources insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$0.51. This is nice to see since it implies that insiders might see value around current prices. 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!

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

Does Mirasol Resources Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 39% of Mirasol Resources shares, worth about CA$11m. 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 Mirasol Resources Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Mirasol Resources shares, given these transactions (along with notable insider ownership of the company). 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 4 warning signs (2 are a bit concerning!) that you ought to be aware of before buying any shares in Mirasol Resources.

Of course Mirasol Resources may not be the best stock to buy. So you may wish to see this free collection of high quality 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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