Insiders' CA$2.37m Investments In Red Following Mirasol Resources' CA$3.9m Dip In Market Value

Insiders who bought CA$2.37m worth of Mirasol Resources Ltd.'s (CVE:MRZ) stock at an average buy price of CA$0.81 over the last year may be disappointed by the recent 10% decrease in the stock. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only CA$1.55m.

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.

View our latest analysis for Mirasol Resources

The Last 12 Months Of Insider Transactions At Mirasol Resources

In the last twelve months, the biggest single purchase by an insider was when Independent Director John Tognetti bought CA$1.0m worth of shares at a price of CA$1.25 per share. That means that an insider was happy to buy shares at above the current price of CA$0.53. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Mirasol Resources insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around CA$0.81. 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Insiders At Mirasol Resources Have Bought Stock Recently

It's good to see that Mirasol Resources insiders have made notable investments in the company's shares. Overall, three insiders shelled out CA$520k for shares in the company -- and none sold. That shows some optimism about the company's future.

Insider Ownership Of Mirasol Resources

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. It's great to see that Mirasol Resources insiders own 43% of the company, worth about CA$15m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Mirasol Resources Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Mirasol Resources. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (2 are significant!) that you ought to be aware of before buying any shares in Mirasol Resources.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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.