Quite a few insiders have dramatically grown their holdings in Jaguar Mining Inc. (TSE:JAG) over the past 12 months. An insider’s optimism about the company’s prospects is a positive sign.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Jaguar Mining
Jaguar Mining Insider Transactions Over The Last Year
The insider Eric Sprott made the biggest insider purchase in the last 12 months. That single transaction was for CA$2.6m worth of shares at a price of CA$3.50 each. Even though the purchase was made at a significantly lower price than the recent price (CA$5.17), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.
Over the last year, we can see that insiders have bought 1.88m shares worth CA$5.4m. But insiders sold 12.50k shares worth CA$48k. In total, Jaguar Mining insiders bought more than they sold over the last year. The average buy price was around CA$2.87. It is certainly positive to see 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. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insiders At Jaguar Mining Have Bought Stock Recently
Over the last three months, we’ve seen significantly more insider buying, than insider selling, at Jaguar Mining. Insiders spent CA$2.7m on shares. But we did see insider Jonathan Hill sell shares worth CA$27k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Jaguar Mining insiders own 47% of the company, currently worth about CA$195m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Jaguar Mining Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Jaguar Mining. Nice! Of course, the future is what matters most. So if you are interested in Jaguar Mining, you should check out this free report on analyst forecasts for the company.
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.