Whilst it may not be a huge deal, we thought it was good to see that the Lundin Mining Corporation (TSE:LUN) President, Jack O. Lundin, recently bought CA$100k worth of stock, for CA$12.48 per share. However, it only increased their shares held by 1.6%, and it wasn't a huge purchase by absolute value, either.
Check out our latest analysis for Lundin Mining
The Chairman of the Board Adam Lundin made the biggest insider purchase in the last 12 months. That single transaction was for CA$993k worth of shares at a price of CA$13.23 each. That means that even when the share price was higher than CA$12.46 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 222.00k shares for CA$2.9m. But insiders sold 3.36k shares worth CA$45k. In the last twelve months there was more buying than selling by Lundin Mining insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Lundin 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.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Lundin Mining insiders own 0.3% of the company, worth about CA$29m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Lundin Mining we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lundin Mining. For example - Lundin Mining has 2 warning signs we think you should be aware of.