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Cardero Resource Corp. (CVE:CDU) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 19% decline in the stock price. After taking the recent loss into consideration, the CA$346k worth of stock they bought is now worth CA$403k, indicating that their investment yielded a positive return.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Cardero Resource
In the last twelve months, the biggest single purchase by an insider was when Director Robert Kopple bought CA$336k worth of shares at a price of CA$0.056 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.065. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months Cardero Resource insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Cardero Resource is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Have Cardero Resource Insiders Traded Recently?
Chief Financial Officer Sead Hamzagic bought just CA$3.5k worth of shares in that time. That's not much at all. Overall, we don't think these recent trades are particularly informative, one way or the other.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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's great to see that Cardero Resource insiders own 66% of the company, worth about CA$6.6m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Cardero Resource Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Cardero Resource insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the 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. Case in point: We've spotted 6 warning signs for Cardero Resource you should be aware of, and 4 of these are potentially serious.
But note: Cardero Resource 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.
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.
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