Yahoo Finance MD & Director of Midas Minerals Mark Calderwood Buys 18% More Shares
Even if it's not a huge purchase, we think it was good to see that Mark Calderwood, the MD & Director of Midas Minerals Limited (ASX:MM1) recently shelled out AU$77k to buy stock, at AU$0.07 per share. That purchase might not be huge but it did increase their holding by 18%.
Check out our latest analysis for Midas Minerals
The Last 12 Months Of Insider Transactions At Midas Minerals
Notably, that recent purchase by MD & Director Mark Calderwood was not the only time they bought Midas Minerals shares this year. Earlier in the year, they paid AU$0.17 per share in a AU$80k purchase. That means that even when the share price was higher than AU$0.065 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Midas Minerals insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$0.10. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Midas Minerals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Midas Minerals insiders own about AU$1.6m worth of shares. That equates to 25% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Midas Minerals Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Midas Minerals we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Midas Minerals. You'd be interested to know, that we found 4 warning signs for Midas Minerals and we suggest you have a look.
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.
