Should you be reassured about insider trading at Jubilee Metals Group PLC (LON: JLP)?
We often see insiders buying back shares of companies that are performing well over the long term. Unfortunately, there are also many examples of stock prices plummeting after insiders sell stocks. Shareholders might therefore want to know if any insiders bought or sold shares of Jubilee Metals Group PLC (LON: JLP).
Are Insider Trading Important?
It is quite normal to see company insiders, such as board members, trading company shares from time to time. However, most countries require the company to disclose these transactions to the market.
Insider trading is not the most important thing when it comes to investing for the long term. But also, we would consider it foolish to ignore insider trading altogether. For example, a Columbia University to study found that “insiders are more likely to engage in open market purchases of their own company’s stocks when the company is about to reveal new deals with customers and suppliers.”
The last 12 months of insider trading at Jubilee Metals Group
CEO and Executive Director Leon Coetzer made the biggest insider buy in the past 12 months. This one-time transaction involved shares valued at £ 55,000 priced at £ 0.11 each. Even though the purchase was made at a much lower price than the recent price (UK £ 0.18), we still believe insider buying is positive. Because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find the current price attractive.
Jubilee Metals Group insiders may have bought shares in the past year, but they haven’t sold any. The chart below shows insider trading (by companies and individuals) over the past year. If you want to know exactly who sold, for how much and when, just click on the graph below!
There are always a lot of stocks that insiders buy. So if it suits your style, you can check each stock one by one or you can take a look at this free list of companies. (Hint: insiders bought them).
Insider ownership of Jubilee Metals Group
Looking at the total insider stakes in a company can help you determine if they are aligned with common shareholders. We generally like to see fairly high levels of insider ownership. It appears that insiders of Jubilee Metals Group own 6.4% of the company, worth around £ 25million. This level of insider ownership is good but just short of being particularly noteworthy. It certainly suggests a reasonable degree of alignment.
So what do Jubilee Metals Group insider trading indicate?
There haven’t been any insider trading in the past three months, that doesn’t mean much. But insiders have shown more appetite for the title over the past year. Insiders own shares in Jubilee Metals Group and we see no evidence to suggest that they are worried about the future. So these insider trading can help us build a stock thesis, but it’s also worth knowing the risks this business faces. Every business has risks, and we have spotted 2 warning signs for Jubilee Metals Group (of which 1 is of concern!) that you should know about.
Of course, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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