A significant insider stock buy was the catalyst propelling United States Antimony (UAMY +8.11%) stock to a substantial gain on Hump Day. Largely on that investor sentiment-boosting development, the sole North American antimony producer’s stock rose by a sturdy 8% in the Wednesday trading session.
A director makes a buy
In a regulatory document, U.S. Antimony divulged that a member of its board of directors, Jon Marinelli, purchased 12,500 shares of the company. He paid $7.45 per share in the transaction.
Image source: Getty Images.
Marinelli is a relatively recent arrival to the board, having been appointed in late November of last year. With his appointment, the company’s governing body expanded to seven individuals. He has a finance industry background, and currently serves as the principal at the advisory and investment firm he founded, 1042 Capital Partners.
In addition to the general morale boost that most insider buys generate, this one was likely considered meaningful given Marinelli’s background. A seasoned investment professional is likely to buy shares of a company he or she is involved with for financial gain, not only for the optics of the move.
Today’s Change
(8.11%) $0.57
Current Price
$7.67
Key Data Points
Market Cap
$1.1B
Day’s Range
$7.21 – $7.83
52wk Range
$1.94 – $19.71
Volume
310.1K
Avg Vol
11.9M
Gross Margin
-2010.32%
Care is warranted
U.S. Antimony is in a strong position, given its exclusivity and the fact that antimony is a valuable element used in the production of semiconductors — which, at this point, the world can’t operate without.
That said, its share price has generally rocketed higher over the years, and its valuations look rich, so I’d exercise caution rather than blindly following along with an insider buy — no matter how inspiring.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.