Daniel Myerson Spends CA$74m On Foran Mining Stock

Foran Mining Corporation (TSE:FOM) shareholders (or potential shareholders) will be happy to see that the CEO & Executive Chairman, Daniel Myerson, recently bought a whopping CA$74m worth of stock, at a price of CA$3.86. There’s no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by -249%.

We’ve found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

In fact, the recent purchase by CEO & Executive Chairman Daniel Myerson was not their only acquisition of Foran Mining shares this year. Earlier in the year, they paid CA$3.00 per share in a CA$844k purchase. We do like to see buying, but this purchase was made at well below the current price of CA$3.73. 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.

In the last twelve months there was more buying than selling by Foran Mining insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Foran Mining

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).

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Foran Mining insiders own 2.9% of the company, worth about CA$58m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

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 Foran Mining insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Foran Mining. At Simply Wall St, we’ve found that Foran Mining has 4 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.