Yahoo Finance Should You Be Worried About Insider Transactions At International Frontier Resources Corporation (CVE:IFR)?
It is not uncommon to see companies perform well in the years after insiders buy shares. 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 shareholders might well want to know whether insiders have been buying or selling shares in International Frontier Resources Corporation (CVE:IFR).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. 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.’
Check out our latest analysis for International Frontier Resources
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The Last 12 Months Of Insider Transactions At International Frontier Resources
In the last twelve months, the biggest single sale by an insider was when COO & Director Andrew Fisher sold CA$69k worth of shares at a price of CA$0.095 per share. So we know that an insider sold shares at around the present share price of CA$0.085. They could have a variety of motivations for selling, but it’s still not particularly encouraging to see. Arguably, insider selling at around current prices should give us reason to reflect on whether the stock is fully valued at the moment. Andrew Fisher was the only individual insider to sell shares in the last twelve months.
Happily, we note that in the last year insiders paid CA$28k for 275.00k shares. On the other hand they divested 726.75k shares, for CA$69k. You can see a visual depiction of insider transactions (by 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
International Frontier Resources Insiders Are Selling The Stock
The last three months saw some International Frontier Resources insider selling. Andrew Fisher sold CA$69k worth of shares in that time. But (as above)at least we saw CA$28k worth of buying. While it’s not great to see insider selling, the net amount sold isn’t enough for us to want to read anything into it.
Insider Ownership of International Frontier 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 17% of International Frontier Resources shares, worth about CA$2.2m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At International Frontier Resources Tell Us?
Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. Recent sales exacerbate our caution arising from analysis of International Frontier Resources insider transactions. But we do like the fact that insiders own a fair chunk of the company. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free .
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.
