PPX Mining Decline Means Insider Profits Down To CA$10k

Insiders who bought PPX Mining Corp. (CVE:PPX) stock lover the last 12 months are probably not as affected by last week’s 17% loss. After taking the recent loss into consideration, the CA$90.0k worth of stock they bought is now worth CA$100.0k, indicating that their investment yielded a positive return.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for PPX Mining

PPX Mining Insider Transactions Over The Last Year

The Executive Chairman Brian Imrie made the biggest insider purchase in the last 12 months. That single transaction was for CA$90k worth of shares at a price of CA$0.045 each. We do like to see buying, but this purchase was made at well below the current price of CA$0.05. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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.

Does PPX Mining Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. It's great to see that PPX Mining insiders own 42% of the company, worth about CA$16m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The PPX Mining Insider Transactions Indicate?

It doesn't really mean much that no insider has traded PPX Mining shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like PPX Mining insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PPX Mining. Every company has risks, and we've spotted 4 warning signs for PPX Mining (of which 2 shouldn't be ignored!) you should know about.

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 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.