Jose Vizquerra Benavides Bought 39% More Shares In O3 Mining

Those following along with O3 Mining Inc. (CVE:OIII) will no doubt be intrigued by the recent purchase of shares by Jose Vizquerra Benavides, President of the company, who spent a stonking CA$2.1m on stock at an average price of CA$1.10. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 39%.

View our latest analysis for O3 Mining

The Last 12 Months Of Insider Transactions At O3 Mining

Notably, that recent purchase by Jose Vizquerra Benavides is the biggest insider purchase of O3 Mining shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$1.02). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

O3 Mining insiders may have bought shares in the last year, but they didn't sell any. 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!

O3 Mining is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of O3 Mining

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that O3 Mining insiders own about CA$7.2m worth of shares (which is 6.5% of the company). We do generally prefer see higher levels of insider ownership.

So What Do The O3 Mining Insider Transactions Indicate?

The recent insider purchases are heartening. 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that O3 Mining insiders are expecting a bright future. 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. At Simply Wall St, we've found that O3 Mining has 4 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.

Of course O3 Mining 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.