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Even if it's not a huge purchase, we think it was good to see that Luc Bertrand, the Independent Chairman of 5N Plus Inc. (TSE:VNP) recently shelled out CA$118k to buy stock, at CA$1.18 per share. However, it only increased their shares held by 5.7%, and it wasn't a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At 5N Plus
In fact, the recent purchase by Independent Chairman Luc Bertrand was not their only acquisition of 5N Plus shares this year. They previously made an even bigger purchase of CA$290k worth of shares at a price of CA$2.90 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$1.47). 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 369.25k shares for CA$765k. But insiders sold 2.00k shares worth CA$4.1k. In total, 5N Plus insiders bought more than they sold over the last year. The average buy price was around CA$2.07. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and 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!
5N Plus is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Based on our data, 5N Plus insiders have about 3.9% of the stock, worth approximately CA$5.1m. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At 5N Plus Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that 5N Plus insiders are reasonably well aligned, and optimistic for the 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. At Simply Wall St, we found 3 warning signs for 5N Plus that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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.