Trade Alert: Thomas Claugus At Hudbay Minerals Inc. (TSE:HBM), Has Just Spent US$197k Buying 2.6% More Shares

Investors who take an interest in Hudbay Minerals Inc. (TSE:HBM) should definitely note that insider Thomas Claugus recently paid CA$4.74 per share to buy CA$197k worth of the stock. Although the purchase only increased their holding by 2.6%, it is still a solid purchase in our view.

See our latest analysis for Hudbay Minerals

The Last 12 Months Of Insider Transactions At Hudbay Minerals

Over the last year, we can see that the biggest insider sale was by the Independent Director, Daniel Quintanilla, for CA$722k worth of shares, at about CA$4.02 per share. That means that an insider was selling shares at slightly below the current price (CA$4.59). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 95% of Daniel Quintanilla's holding. Notably Daniel Quintanilla was also the biggest buyer, having purchased CA$2.7m worth of shares.

In the last twelve months insiders purchased 883.30k shares for CA$2.7m. But insiders sold 293.90k shares worth CA$1.2m. In the last twelve months there was more buying than selling by Hudbay Minerals insiders. Their average price was about CA$3.05. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.8% of Hudbay Minerals shares, worth about CA$10m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Do The Hudbay Minerals Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Hudbay Minerals we think they are probably pretty confident of a bright 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. You'd be interested to know, that we found 1 warning sign for Hudbay Minerals and we suggest you have a look.

Of course Hudbay Minerals 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.

This article by Simply Wall St is general in nature. 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.

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