Yahoo Finance Insiders of Constantine Metal Resources Ltd. (CVE:CEM) reaped rewards after their CA$1.3m investment jumped another CA$1.9m
Constantine Metal Resources Ltd. (CVE:CEM) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 34% resulting in a CA$12m addition to the company’s market value. As a result, their original purchase of CA$1.3m worth of stock is now worth CA$3.2m.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Constantine Metal Resources
The Last 12 Months Of Insider Transactions At Constantine Metal Resources
Notably, that recent purchase by Michael Gentile is the biggest insider purchase of Constantine Metal Resources shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of CA$0.55. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Over the last year, we can see that insiders have bought 5.78m shares worth CA$1.3m. On the other hand they divested 2.35m shares, for CA$853k. In total, Constantine Metal Resources insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Constantine Metal Resources Have Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Constantine Metal Resources. In total, insider Michael Gentile bought CA$1.3m worth of shares in that time. But we did see insider John Tognetti sell shares worth CA$853k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership of Constantine Metal Resources
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 30% of Constantine Metal Resources shares, worth about CA$9.7m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Constantine Metal Resources Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Constantine Metal Resources we think they are probably pretty confident of 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 Constantine Metal Resources is showing 4 warning signs in our investment analysis, and 1 of those is potentially serious...
Of course Constantine Metal Resources 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.
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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