Insiders Give Up CA$30k As PPX Mining Stock Drops To CA$0.03

The recent 25% drop in PPX Mining Corp.'s (CVE:PPX) stock could come as a blow to insiders who purchased CA$90.0k worth of stock at an average buy price of CA$0.045 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth CA$60.0k which is not ideal.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for PPX Mining

The Last 12 Months Of Insider Transactions At PPX Mining

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Brian Imrie for CA$90k worth of shares, at about CA$0.045 per share. That means that even when the share price was higher than CA$0.03 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Brian Imrie.

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!

PPX Mining is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of PPX Mining

Many investors like to check how much of a company is owned by 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. PPX Mining insiders own 42% of the company, currently worth about CA$10m based on the recent share price. 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 PPX Mining Insider Transactions Indicate?

The fact that there have been no PPX Mining insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like PPX Mining insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PPX Mining. For example, PPX Mining has 5 warning signs (and 3 which are significant) we think you should know about.

But note: PPX Mining may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.