Yahoo Finance Who Has Been Buying Copper Mountain Mining Corporation (TSE:CMMC) Shares?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 Copper Mountain Mining Corporation (TSE:CMMC), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
See our latest analysis for Copper Mountain Mining
The Last 12 Months Of Insider Transactions At Copper Mountain Mining
Over the last year, we can see that the biggest insider purchase was by President Gilmour Clausen for CA$199k worth of shares, at about CA$0.97 per share. That means that an insider was happy to buy shares at above the current price of CA$0.34. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
Happily, we note that in the last year insiders paid CA$1.4m for 1.84m shares. On the other hand they divested 20000 shares, for CA$8.5k. In total, Copper Mountain Mining insiders bought more than they sold over the last year. The average buy price was around CA$0.74. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Copper Mountain 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.
Insiders at Copper Mountain Mining Have Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Copper Mountain Mining. Insiders spent CA$134k on shares. But Vice President of Corporate Development & Investor Relations Letitia Wong sold shares worth CA$8.5k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Does Copper Mountain Mining Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Copper Mountain Mining insiders own 7.3% of the company, worth about CA$4.7m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Copper Mountain Mining Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Copper Mountain Mining insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Copper Mountain Mining. In terms of investment risks, we've identified 3 warning signs with Copper Mountain Mining and understanding them should be part of your investment process.
But note: Copper Mountain Mining 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.
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.
