Insider Buyers At Val-d'Or Mining Sitting On CA$686k Profit

Insiders who bought Val-d'Or Mining Corporation (CVE:VZZ) in the last 12 months may probably not pay attention to the stock's recent 10.0% drop. Even after accounting for the recent loss, the CA$864.2k worth of stock purchased by them is now worth CA$1.55m or in other words, their investment continues to give good returns.

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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The Last 12 Months Of Insider Transactions At Val-d'Or Mining

In the last twelve months, the biggest single purchase by an insider was when Director Jimmy S. Lee bought CA$600k worth of shares at a price of CA$0.05 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.09. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Val-d'Or Mining insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Val-d'Or 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).

Does Val-d'Or Mining Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 27% of Val-d'Or Mining shares, worth about CA$2.8m. 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 Val-d'Or Mining Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Val-d'Or Mining shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Val-d'Or Mining and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for Val-d'Or Mining (2 shouldn't be ignored!) and we strongly recommend you look at these before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.