PPX Mining's Market Cap Up CA$15m Following Year Of Insider Stock Buying

Last week, PPX Mining Corp. (CVE:PPX) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 17% last week, resulting in a CA$15m increase in the company's market worth, implying a 211% gain on their initial purchase. In other words, the original CA$101.1k purchase is now worth CA$314.6k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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PPX Mining Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CFO & Corporate Secretary Pompeyo Gallardo bought CA$100k worth of shares at a price of CA$0.045 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.14), we still think insider buying is a positive. 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.

While PPX Mining insiders bought shares during the last year, they didn't sell. 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!

See our latest analysis for PPX Mining

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of PPX Mining

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. A high insider ownership often makes company leadership more mindful of shareholder interests. PPX Mining insiders own about CA$38m worth of shares. That equates to 40% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller 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. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think PPX Mining insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PPX Mining. Case in point: We've spotted 5 warning signs for PPX Mining you should be aware of, and 3 of them don't sit too well with us.

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.