Insiders Of International Tower Hill Mines Are Up 25% On Their US$101.1m Purchase
Last week, International Tower Hill Mines Ltd. (TSE:ITH) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 11% last week, resulting in a CA$97m increase in the company's market worth, implying a 25% gain on their initial purchase. As a result, their original purchase of US$101.1m worth of stock is now worth US$126.7m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At International Tower Hill Mines
In the last twelve months, the biggest single purchase by an insider was when insider John Paulson bought CA$84m worth of shares at a price of CA$3.01 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$3.87. 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.
John Paulson purchased 32.75m shares over the year. The average price per share was CA$3.09. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for International Tower Hill Mines
International Tower Hill Mines is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
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. We usually like to see fairly high levels of insider ownership. International Tower Hill Mines insiders own about CA$95m worth of shares. That equates to 9.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The International Tower Hill Mines Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in International Tower Hill Mines 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 International Tower Hill Mines. Case in point: We've spotted 3 warning signs for International Tower Hill Mines you should be aware of, and 1 of them is significant.
Of course International Tower Hill Mines 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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