Pleasing Signs As A Number Of Insiders Buy Tombill Mines Stock

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Tombill Mines Limited's (CVE:TBLL) instance, it's good news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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Tombill Mines Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman Adam Horne for CA$200k worth of shares, at about CA$0.01 per share. That means that an insider was happy to buy shares at around the current price of CA$0.01. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

While Tombill Mines insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and 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!

Check out our latest analysis for Tombill Mines

Tombill Mines is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Tombill Mines Have Bought Stock Recently

It's good to see that Tombill Mines insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$221k worth of shares. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Tombill Mines

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. It's great to see that Tombill Mines insiders own 46% of the company, worth about CA$1.8m. 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 Tombill Mines Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Tombill Mines insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Tombill Mines is showing 5 warning signs in our investment analysis, and 4 of those are concerning...

But note: Tombill Mines 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.