Need To Know: Mountain Boy Minerals Ltd. (CVE:MTB) Insiders Have Been Buying Shares

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Mountain Boy Minerals Ltd. (CVE:MTB).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

View our latest analysis for Mountain Boy Minerals

The Last 12 Months Of Insider Transactions At Mountain Boy Minerals

Over the last year, we can see that the biggest insider purchase was by insider Eric Sprott for CA$1m worth of shares, at about CA$0.25 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.35), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid CA$1.6m for 6.08m shares. On the other hand they divested 614.80k shares, for CA$311k. In the last twelve months there was more buying than selling by Mountain Boy Minerals insiders. 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!

Mountain Boy Minerals is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders at Mountain Boy Minerals Have Bought Stock Recently

There was some insider buying at Mountain Boy Minerals over the last quarter. They bought CA$93k worth in that time. However, Independent Chairman Rene Bernard netted CA$70k for sales. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.

Does Mountain Boy Minerals 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. Insiders own 35% of Mountain Boy Minerals shares, worth about CA$6.5m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Mountain Boy Minerals Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Mountain Boy Minerals insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mountain Boy Minerals. Our analysis shows 4 warning signs for Mountain Boy Minerals (2 are potentially serious!) and we strongly recommend you look at these before investing.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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