MTB Metals Insiders Are Down CA$414k But Regain Some Losses

Insiders who bought CA$661.5k worth of MTB Metals Corp. (CVE:MTB) stock in the last year have seen some of their losses recouped as the stock gained 20% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling CA$414k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for MTB Metals

The Last 12 Months Of Insider Transactions At MTB Metals

In the last twelve months, the biggest single purchase by an insider was when insider Ross Beaty bought CA$100k worth of shares at a price of CA$0.16 per share. That means that an insider was happy to buy shares at above the current price of CA$0.03. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Ross Beaty was also the biggest seller.

Happily, we note that in the last year insiders paid CA$661k for 8.26m shares. But they sold 1.00m shares for CA$148k. In total, MTB Metals insiders bought more than they sold over the last year. Their average price was about CA$0.08. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

MTB Metals Insiders Bought Stock Recently

It's good to see that MTB Metals insiders have made notable investments in the company's shares. In total, insiders bought CA$129k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Insider Ownership Of MTB Metals

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. It appears that MTB Metals insiders own 34% of the company, worth about CA$1.3m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About MTB Metals Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of MTB Metals we think they are probably pretty confident of a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, MTB Metals has 5 warning signs (and 4 which are a bit unpleasant) we think you should know about.

Of course MTB Metals 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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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com