MetalsGrove Mining Limited (ASX:MGA) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 20% resulting in a AU$1.2m addition to the company’s market value. As a result, the stock they originally bought for AU$413.2k is now worth AU$671.5k.

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 MetalsGrove Mining

MetalsGrove Mining Insider Transactions Over The Last Year

The Non-Executive Director Haidong Chi made the biggest insider purchase in the last 12 months. That single transaction was for AU$213k worth of shares at a price of AU$0.04 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.065. 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.

MetalsGrove Mining insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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 Of MetalsGrove Mining

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. MetalsGrove Mining insiders own 42% of the company, currently worth about AU$2.9m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About MetalsGrove Mining Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, MetalsGrove Mining insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MetalsGrove Mining. When we did our research, we found 6 warning signs for MetalsGrove Mining (5 shouldn't be ignored!) that we believe deserve your full attention.

But note: MetalsGrove Mining 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.