Everlast Minerals' Market Cap Up AU$5.2m Following Year Of Insider Stock Buying

Everlast Minerals Ltd (ASX:EV8) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 11%, resulting in a AU$5.2m rise in the company's market capitalisation, translating to a gain of 237% on their initial investment. Put another way, the original AU$301.0k acquisition is now worth AU$1.01m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Everlast Minerals

In the last twelve months, the biggest single purchase by an insider was when Executive Chairperson Paul Qian bought AU$276k worth of shares at a price of AU$0.20 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.41. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Everlast Minerals insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.12 on average. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

See our latest analysis for Everlast Minerals

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Everlast Minerals

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. Everlast Minerals insiders own about AU$42m worth of shares (which is 79% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Everlast Minerals Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Everlast Minerals insiders think the business has merit. 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. Our analysis shows 3 warning signs for Everlast Minerals (2 are potentially serious!) and we strongly recommend you look at these before investing.

Of course Everlast Minerals 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.