Insiders At McFarlane Lake Mining See Good Returns After Buying Stock Worth CA$7.07m

McFarlane Lake Mining Limited (CSE:MLM) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 23% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of CA$7.07m is now worth CA$13.4m.

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 McFarlane Lake Mining

Notably, that recent purchase by Michael Gentile is the biggest insider purchase of McFarlane Lake Mining shares that we’ve seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.22. 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.

In the last twelve months McFarlane Lake Mining insiders were buying shares, but not selling. 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!

Check out our latest analysis for McFarlane Lake Mining

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.

McFarlane Lake Mining Insiders Bought Stock Recently

Over the last three months, we’ve seen significant insider buying at McFarlane Lake Mining. Not only was there no selling that we can see, but they collectively bought CA$6.4m worth of shares. This could be interpreted as suggesting a positive outlook.

Does McFarlane Lake Mining Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 23% of McFarlane Lake Mining shares, worth about CA$25m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At McFarlane Lake Mining Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don’t feel the same about the fact the company is making losses. Insiders likely see value in McFarlane Lake Mining shares, given these transactions (along with notable insider ownership of 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. At Simply Wall St, we’ve found that McFarlane Lake Mining has 6 warning signs (4 can’t be ignored!) that deserve your attention before going any further with your analysis.

Of course McFarlane Lake Mining 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.