Velocity Minerals Reaches CA$45m Market Cap Benefiting Insider Stock Buying
Velocity Minerals Ltd. (CVE:VLC) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 10.0%, resulting in a CA$4.1m rise in the company's market capitalisation, translating to a gain of 19% on their initial investment. Put another way, the original CA$138.8k acquisition is now worth CA$165.0k.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Velocity Minerals Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Robert Kopple bought CA$139k worth of shares at a price of CA$0.19 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.22. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
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 Velocity Minerals
Velocity Minerals is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Velocity Minerals
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. It appears that Velocity Minerals insiders own 20% of the company, worth about CA$9.2m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Velocity Minerals Tell Us?
It doesn't really mean much that no insider has traded Velocity Minerals shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Velocity Minerals and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Velocity Minerals. Our analysis shows 3 warning signs for Velocity Minerals (2 are concerning!) and we strongly recommend you look at them before investing.
But note: Velocity Minerals 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.