The CEO & Director of Prime Mining Corp. (CVE:PRYM), Andrew Bowering, Just Bought 23% More Shares

By
Simply Wall St
Published
February 10, 2020

Investors who take an interest in Prime Mining Corp. (CVE:PRYM) should definitely note that the CEO & Director, Andrew Bowering, recently paid CA$0.37 per share to buy CA$199k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 23%.

See our latest analysis for Prime Mining

The Last 12 Months Of Insider Transactions At Prime Mining

In fact, the recent purchase by CEO & Director Andrew Bowering was not their only acquisition of Prime Mining shares this year. Earlier in the year, they paid CA$0.60 per share in a CA$240k purchase. That means that an insider was happy to buy shares at above the current price of CA$0.54. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Prime Mining insiders may have bought shares in the last year, but they didn't sell any. They paid about CA$0.37 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

TSXV:PRYM Recent Insider Trading, February 10th 2020

Prime Mining is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

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 Prime Mining insiders own about CA$1.8m worth of shares (which is 5.6% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Prime Mining Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Prime Mining stock. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

But note: Prime 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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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