Insiders who purchased Fidelity Minerals Corp. (CVE:FMN) shares in the past 12 months are unlikely to be deeply impacted by the stock's 10% decline over the past week. Even after accounting for the recent loss, the CA$142.3k worth of stock purchased by them is now worth CA$188.5k or in other words, their investment continues to give good returns.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Fidelity Minerals
In the last twelve months, the biggest single purchase by an insider was when Independent Director Dean Pekeski bought CA$94k worth of shares at a price of CA$0.20 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.27), we still think insider buying is a positive. 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.
Fidelity Minerals insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Fidelity 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).
Insiders At Fidelity Minerals Have Bought Stock Recently
It's good to see that Fidelity Minerals insiders have made notable investments in the company's shares. Overall, two insiders shelled out CA$142k for shares in the company -- and none sold. This makes one think the business has some good points.
Insider Ownership Of Fidelity Minerals
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data indicates that Fidelity Minerals insiders own about CA$1.0m worth of shares (which is 8.0% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Fidelity Minerals Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Fidelity Minerals insiders are expecting a bright future. 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. Be aware that Fidelity Minerals is showing 4 warning signs in our investment analysis, and 3 of those are a bit concerning...
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.