Yahoo Finance Positive Signs As Multiple Insiders Buy Bear Creek Mining Stock
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Bear Creek Mining Corporation (CVE:BCM), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Bear Creek Mining
The Last 12 Months Of Insider Transactions At Bear Creek Mining
Over the last year, we can see that the biggest insider purchase was by Independent Chairman Catherine McLeod-Seltzer for CA$81k worth of shares, at about CA$0.27 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.33. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months insiders purchased 833.04k shares for CA$196k. But insiders sold 100.00k shares worth CA$40k. In the last twelve months there was more buying than selling by Bear Creek Mining insiders. Their average price was about CA$0.24. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!
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).
Bear Creek Mining Insiders Are Selling The Stock
We have seen a bit of insider selling at Bear Creek Mining, over the last three months. Director Andrew Swarthout sold just CA$40k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the amount sold isn't enough for us to put any weight on it.
Does Bear Creek Mining Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own CA$2.0m worth of Bear Creek Mining stock, about 2.5% of the company. We prefer to see high levels of insider ownership.
So What Do The Bear Creek Mining Insider Transactions Indicate?
While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we're not concerned. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Bear Creek Mining stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bear Creek Mining. Every company has risks, and we've spotted 5 warning signs for Bear Creek Mining (of which 1 is a bit concerning!) you should know about.
Of course Bear Creek Mining 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
