Mongoose Mining Insider Confidence Rewarded, Stock Hits CA$3.0m Market Cap

Mongoose Mining Ltd. (CSE:MNG) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 14%, resulting in a CA$348k rise in the company’s market capitalisation, translating to a gain of 62% on their initial investment. In other words, the original CA$132.4k purchase is now worth CA$214.0k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Mongoose Mining

The Co-President (Operations) Terence Coughlan made the biggest insider purchase in the last 12 months. That single transaction was for CA$130k worth of shares at a price of CA$0.05 each. Even though the purchase was made at a significantly lower price than the recent price (CA$0.08), we still think insider buying is a positive. 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.

Over the last year, we can see that insiders have bought 2.68m shares worth CA$132k. But they sold 739.08k shares for CA$80k. In the last twelve months there was more buying than selling by Mongoose Mining insiders. 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!

View our latest analysis for Mongoose 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).

Insider Ownership Of Mongoose Mining

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Mongoose Mining insiders own 14% of the company, worth about CA$425k. However, it’s possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!

What Might The Insider Transactions At Mongoose Mining Tell Us?

It doesn’t really mean much that no insider has traded Mongoose Mining shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it’d be more encouraging if Mongoose Mining insiders bought more shares in the company. While it’s good to be aware of what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we’ve spotted 5 warning signs for Mongoose Mining you should know about.

But note: Mongoose 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.