Insider Buying: The Murchison Minerals Ltd. (CVE:MUR) Director Just Bought 13% More Shares

Investors who take an interest in Murchison Minerals Ltd. (CVE:MUR) should definitely note that the Director, Donald Johnson, recently paid CA$0.08 per share to buy CA$300k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 13%.

Check out our latest analysis for Murchison Minerals

Murchison Minerals Insider Transactions Over The Last Year

In fact, the recent purchase by Director Donald Johnson was not their only acquisition of Murchison Minerals shares this year. They previously made an even bigger purchase of CA$428k worth of shares at a price of CA$0.095 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.08). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay 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.

While Murchison Minerals insiders bought shares during the last year, they didn't sell. They paid about CA$0.081 on average. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Murchison 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.

Does Murchison Minerals Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Murchison Minerals insiders own 29% of the company, worth about CA$2.6m. 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 Murchison Minerals Insiders?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. 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 Murchison Minerals shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Murchison Minerals. When we did our research, we found 4 warning signs for Murchison Minerals (3 don't sit too well with us!) that we believe deserve your full attention.

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, 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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