Yahoo Finance Insider Buying: The World Copper Ltd. (CVE:WCU) Chairman of the Board Just Bought 34% More Shares
Even if it's not a huge purchase, we think it was good to see that Hendrik Van Alphen, the Chairman of the Board of World Copper Ltd. (CVE:WCU) recently shelled out CA$62k to buy stock, at CA$0.12 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 34%.
See our latest analysis for World Copper
The Last 12 Months Of Insider Transactions At World Copper
In fact, the recent purchase by Hendrik Van Alphen was the biggest purchase of World Copper shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.13). 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Hendrik Van Alphen was the only individual insider to buy during the last year.
Hendrik Van Alphen purchased 977.50k shares over the year. The average price per share was CA$0.13. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
World Copper is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, World Copper insiders have about 1.9% of the stock, worth approximately CA$310k. We consider this fairly low insider ownership.
So What Does This Data Suggest About World Copper Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that World Copper insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that World Copper is showing 4 warning signs in our investment analysis, and 1 of those can't be ignored...
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.
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. 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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