Yahoo Finance Great news for Comstock Metals Ltd. (CVE:CSL): Insiders acquired stock in large numbers last year
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 Comstock Metals Ltd. (CVE:CSL), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Comstock Metals
Comstock Metals Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President Steven Goldman bought CA$90k worth of shares at a price of CA$0.09 per share. So it's clear an insider wanted to buy, at around the current price, which is CA$0.09. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months Comstock Metals 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!
Comstock Metals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Comstock Metals Insiders Bought Stock Recently
There was some insider buying at Comstock Metals over the last quarter. Independent Director Robert Luffman shelled out CA$18k for shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Comstock Metals insiders own about CA$365k worth of shares (which is 14% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Comstock Metals Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Comstock Metals insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Comstock Metals. For example, Comstock Metals has 4 warning signs (and 3 which are potentially serious) we think you should know about.
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.
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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.
