Yahoo Finance How Many Insiders Bought Canadian Metals Inc. (CNSX:CME) Shares?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Canadian Metals Inc. (CNSX:CME).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
See our latest analysis for Canadian Metals
The Last 12 Months Of Insider Transactions At Canadian Metals
In the last twelve months, the biggest single purchase by an insider was when Founder Stéphane Leblanc bought CA$180k worth of shares at a price of CA$0.12 per share. That means that an insider was happy to buy shares at above the current price. 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. It’s not at all bad to see insiders buy shares at or above current prices.
In the last twelve months insiders paid CA$239k for 2.38m shares purchased. In the last twelve months there was more buying than selling by Canadian Metals insiders. Their average price was about CA$0.10. These transactions suggest that insiders have considered the current price of CA$0.065 attractive. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at Canadian Metals Have Bought Stock Recently
There was some insider buying at Canadian Metals over the last quarter. Insiders purchased CA$36k worth of shares in that period. It’s good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn’t enough for us too put much weight on it, as a single factor.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Canadian Metals insiders own about CA$1.2m worth of shares (which is 15% of the company). Whilst better than nothing, we’re not overly impressed by these holdings.
What Might The Insider Transactions At Canadian Metals Tell Us?
Insider purchases have outweighed sales, in the last three months. But the net investment is not enough to encourage us much. 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 Canadian Metals insiders are doubting the company. Along with insider transactions, I recommend checking if Canadian Metals is growing revenue. This free chart of historic revenue and earnings should make that easy.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
