Cleghorn Minerals Decline Means Insider Profits Down To CA$110k

Insiders who bought Cleghorn Minerals Ltd. (CVE:CZZ) in the last 12 months may probably not pay attention to the stock's recent 13% drop. After taking the recent loss into consideration, the CA$159.8k worth of stock they bought is now worth CA$269.8k, indicating that their investment yielded a positive return.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Cleghorn Minerals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Joseph Groia for CA$100k worth of shares, at about CA$0.06 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.10. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Cleghorn Minerals insiders bought shares during the last year, they didn't sell. 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 Cleghorn Minerals

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).

Cleghorn Minerals Insiders Bought Stock Recently

Over the last quarter, Cleghorn Minerals insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought CA$150k worth of shares. This is a positive in our book as it implies some confidence.

Does Cleghorn Minerals Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Cleghorn Minerals insiders own 64% of the company, currently worth about CA$2.5m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Cleghorn Minerals Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Cleghorn Minerals insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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 4 warning signs for Cleghorn Minerals that deserve your attention before buying any shares.

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.