Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Osisko Metals Incorporated (CVE:OM), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Osisko Metals Insider Transactions Over The Last Year
Notably, that recent purchase by Founder Robert Wares was not the only time they bought Osisko Metals shares this year. Earlier in the year, they paid CA$0.48 per share in a CA$600k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.39). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 6.52m shares for CA$2.9m. On the other hand they divested 200.00k shares, for CA$89k. Overall, Osisko Metals insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Osisko Metals 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.
Insiders at Osisko Metals Have Bought Stock Recently
It's good to see that Osisko Metals insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$324k worth of shares. This could be interpreted as suggesting a positive outlook.
Insider Ownership of Osisko Metals
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. It appears that Osisko Metals insiders own 19% of the company, worth about CA$15m. 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 Does This Data Suggest About Osisko Metals Insiders?
The recent insider purchases are heartening. 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 Osisko Metals we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 4 warning signs we've spotted with Osisko Metals (including 2 which don't sit too well with us).
But note: Osisko Metals 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.