Investors who take an interest in Fireweed Zinc Ltd. (CVE:FWZ) should definitely note that the Chairman of the Board, John Robins, recently paid CA$0.53 per share to buy CA$250k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 19%.
Fireweed Zinc Insider Transactions Over The Last Year
In fact, the recent purchase by John Robins was the biggest purchase of Fireweed Zinc shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is CA$0.64. That means they have been optimistic about the company in the past, though they may have changed their mind. 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.
Fireweed Zinc insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around CA$0.39. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!
Fireweed Zinc is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Fireweed Zinc
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Fireweed Zinc insiders own 11% of the company, worth about CA$3.4m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Fireweed Zinc Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Fireweed Zinc stock. 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. To help with this, we've discovered 4 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Fireweed Zinc.
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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