When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Black Mammoth Metals Corporation's (CVE:BMM) instance, it's good news for shareholders.

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.

See our latest analysis for Black Mammoth Metals

The Last 12 Months Of Insider Transactions At Black Mammoth Metals

The insider Olivier Tielens made the biggest insider purchase in the last 12 months. That single transaction was for CA$300k worth of shares at a price of CA$0.50 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.90. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Black Mammoth Metals insiders bought shares during the last year, they didn't sell. The average buy price was around CA$0.26. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Black Mammoth Metals insiders own about CA$11m worth of shares (which is 42% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Black Mammoth Metals Insiders?

It doesn't really mean much that no insider has traded Black Mammoth Metals shares in the last quarter. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Black Mammoth Metals insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Black Mammoth Metals is showing 5 warning signs in our investment analysis, and 4 of those are significant...