Quite a few insiders invested in Stuhini Exploration Ltd. (CVE:STU) last year which is positive news for shareholders

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Stuhini Exploration Ltd. (CVE:STU), that sends out a positive message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Stuhini Exploration

The Last 12 Months Of Insider Transactions At Stuhini Exploration

In fact, the recent purchase by Eric Sprott was the biggest purchase of Stuhini Exploration shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of CA$0.28. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 672.48k shares for CA$223k. But insiders sold 3.00k shares worth CA$2.5k. Overall, Stuhini Exploration insiders were net buyers during the last year. Their average price was about CA$0.33. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Stuhini Exploration is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Stuhini Exploration Have Bought Stock Recently

It's good to see that Stuhini Exploration insiders have made notable investments in the company's shares. Overall, two insiders shelled out CA$106k for shares in the company -- and none sold. That shows some optimism about the company's future.

Does Stuhini Exploration 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. It appears that Stuhini Exploration insiders own 29% of the company, worth about CA$2.7m. 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 Stuhini Exploration Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Stuhini Exploration we think they are probably pretty confident of a bright future. While we like knowing 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. Case in point: We've spotted 5 warning signs for Stuhini Exploration you should be aware of, and 4 of them can't be ignored.

Of course Stuhini Exploration 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here