Insider Spends CA$1.2m Buying More Shares In Leading Edge Materials
Leading Edge Materials Corp. (CVE:LEM) shareholders (or potential shareholders) will be happy to see that the Interim CEO & Director, Eric Krafft, recently bought a whopping CA$1.2m worth of stock, at a price of CA$0.11. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 17%.
View our latest analysis for Leading Edge Materials
The Last 12 Months Of Insider Transactions At Leading Edge Materials
Notably, that recent purchase by Eric Krafft is the biggest insider purchase of Leading Edge Materials shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (CA$0.13), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Leading Edge Materials insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Leading Edge Materials 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.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Leading Edge Materials insiders own 41% of the company, currently worth about CA$9.9m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Leading Edge Materials Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Leading Edge Materials insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. When we did our research, we found 4 warning signs for Leading Edge Materials (1 is a bit concerning!) that we believe deserve your full attention.
Of course Leading Edge Materials 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.
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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.
