Insiders See CA$71.9m Investment In Max Power Mining Jump Last Week

Insiders who bought Max Power Mining Corp. (CSE:MAXX) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$74m as a result of the stock's 13% gain over the same period. As a result, the stock they originally bought for CA$71.9m is now worth CA$129.9m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Max Power Mining

Over the last year, we can see that the biggest insider purchase was by insider Eric Sprott for CA$50m worth of shares, at about CA$2.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$3.47. 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.

Max Power Mining insiders may have bought shares in the last year, but they didn't sell any. 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 Max Power Mining

Max Power Mining 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.

Max Power Mining Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Max Power Mining. In total, insiders bought CA$10m worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

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. Max Power Mining insiders own 26% of the company, currently worth about CA$152m 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.

What Might The Insider Transactions At Max Power Mining Tell Us?

The recent insider purchases are heartening. 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Max Power Mining. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 4 warning signs for Max Power Mining you should be aware of, and 3 of them are a bit concerning.

But note: Max Power Mining may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.