Insider Buying: Pierre Lassonde Just Spent CA$2.7m On Prime Mining Corp. (CVE:PRYM) Shares

By
Simply Wall St
Published
April 17, 2022
TSXV:PRYM
Source: Shutterstock

Prime Mining Corp. (CVE:PRYM) shareholders (or potential shareholders) will be happy to see that insider Pierre Lassonde recently bought a whopping CA$2.7m worth of stock, at a price of CA$3.65. While that only increased their holding size by 5.8%, it is still a big swing by our standards.

Check out our latest analysis for Prime Mining

Prime Mining Insider Transactions Over The Last Year

In fact, the recent purchase by insider Pierre Lassonde was not their only acquisition of Prime Mining shares this year. Earlier in the year, they paid CA$4.17 per share in a CA$4.2m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$3.83). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Prime Mining insiders bought shares during the last year, they didn't sell. Their average price was about CA$3.34. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

insider-trading-volume
TSXV:PRYM Insider Trading Volume April 17th 2022

Prime Mining is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Prime Mining insiders own 20% of the company, worth about CA$88m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Prime Mining Tell Us?

It's certainly positive to see the recent insider purchase. 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 Prime Mining shares, given these transactions (along with notable insider ownership of the company). 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. For example, Prime Mining has 3 warning signs (and 2 which are a bit unpleasant) we think you should know about.

Of course Prime 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, but not derivative transactions.

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