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Read This Before Selling Eurasia Mining Plc (LON:EUA) Shares

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Eurasia Mining Plc (LON:EUA), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.

View our latest analysis for Eurasia Mining

Eurasia Mining Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Dmitry Suschov for UK£50k worth of shares, at about UK£0.005 per share. We do like to see buying, but this purchase was made at well below the current price of UK£0.039. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Eurasia Mining insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around UK£0.0029. 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. You can see the insider transactions (by 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!

AIM:EUA Recent Insider Trading, January 20th 2020
AIM:EUA Recent Insider Trading, January 20th 2020

Eurasia Mining is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 13% of Eurasia Mining shares, worth about UK£13m. 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 Eurasia Mining Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Eurasia Mining shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Eurasia Mining and we see no evidence to suggest they are worried about the future. Along with insider transactions, I recommend checking if Eurasia Mining is growing revenue. This free chart of historic revenue and earnings should make that easy.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.