Insider Buyers Lose Additional UK£23k As Molten Ventures Dips To UK£418m

The recent price decline of 14% in Molten Ventures Plc's (LON:GROW) stock may have disappointed insiders who bought UK£95.0k worth of shares at an average price of UK£3.06 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth UK£71.6k, which is not what they expected.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Molten Ventures Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO & Non-Independent Executive Director Benjamin Wilkinson for UK£50k worth of shares, at about UK£3.06 per share. That means that an insider was happy to buy shares at above the current price of UK£2.31. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Molten Ventures insiders were buying shares, but not selling. 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!

See our latest analysis for Molten Ventures

Molten Ventures 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 Molten Ventures Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Molten Ventures. Overall, two insiders shelled out UK£55k for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership Of Molten Ventures

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. From looking at our data, insiders own UK£2.9m worth of Molten Ventures stock, about 0.7% of the company. I generally like to see higher levels of ownership.

So What Do The Molten Ventures Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. 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 Molten Ventures stock. 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. At Simply Wall St, we found 1 warning sign for Molten Ventures that deserve your attention before buying any shares.

Of course Molten Ventures 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 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.