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

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Stuhini Exploration Ltd.'s (CVE:STU) case, it's fantastic 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Stuhini Exploration

Stuhini Exploration Insider Transactions Over The Last Year

The insider Eric Sprott made the biggest insider purchase in the last 12 months. That single transaction was for CA$250k worth of shares at a price of CA$0.50 each. Even though the purchase was made at a significantly lower price than the recent price (CA$0.60), we still think insider buying is a positive. 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 886.50k shares for CA$489k. On the other hand they divested 77.50k shares, for CA$46k. Overall, Stuhini Exploration insiders were net buyers during the last year. They paid about CA$0.55 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Stuhini Exploration Insiders Bought Stock Recently

There was some insider buying at Stuhini Exploration over the last quarter. Corporate Secretary Charles Kamimura bought CA$16k worth of shares in that time. However, Chief Financial Officer Yanika Silina netted CA$660 for sales. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.

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. Stuhini Exploration insiders own about CA$5.9m worth of shares. That equates to 35% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Stuhini Exploration Tell Us?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Stuhini Exploration insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Stuhini Exploration is showing 4 warning signs in our investment analysis, and 2 of those are concerning...

But note: Stuhini Exploration 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, but not derivative transactions.

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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.