Yahoo Finance Insider Buying: The Talon Metals Corp. (TSE:TLO) Independent Director Just Bought 9.1% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Talon Metals Corp. (TSE:TLO) Independent Director, John Kaplan, recently bought CA$74k worth of stock, for CA$0.74 per share. Although the purchase is not a big one, increasing their shareholding by only 9.1%, it can be interpreted as a good sign.
Check out our latest analysis for Talon Metals
The Last 12 Months Of Insider Transactions At Talon Metals
Notably, that recent purchase by John Kaplan is the biggest insider purchase of Talon Metals shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of CA$0.74. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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 when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was John Kaplan.
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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Talon Metals 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 3.7% of Talon Metals shares, worth about CA$19m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Talon Metals Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Talon Metals insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Talon Metals. Case in point: We've spotted 3 warning signs for Talon Metals you should be aware of, and 1 of these makes us a bit uncomfortable.
Of course Talon Metals may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
