We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Western Copper and Gold Corporation (TSE:WRN).
What Is Insider Selling?
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.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
The Last 12 Months Of Insider Transactions At Western Copper and Gold
In the last twelve months, the biggest single sale by an insider was when Director Klaus Zeitler sold CA$124k worth of shares at a price of CA$1.27 per share. That is hardly a positive sign, even though it took place above the latest price (CA$0.75). So it may not tell us anything about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid CA$65k for 63.00k shares. But insiders sold 150.00k shares worth CA$187k. Over the last year we saw more insider selling of Western Copper and Gold shares, than buying. The average sell price was around CA$1.25. We are not joyful about insider selling. But we note that the selling, on average, was at well above the recently traded price of CA$0.75. You can see the insider transactions 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!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Have Western Copper and Gold Insiders Traded Recently?
There was some insider buying at Western Copper and Gold over the last quarter. Chief Executive Officer and President Paul West-Sells shelled out CA$10k for shares in that time. It’s great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Western Copper and Gold insiders own 8.3% of the company, currently worth about CA$5.6m 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 Do The Western Copper and Gold Insider Transactions Indicate?
Our data shows a little more insider buying than selling in the last three months. But the difference isn’t much. Our analysis of Western Copper and Gold insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. Of course, the future is what matters most. So if you are interested in Western Copper and Gold, you should check out this free report on analyst forecasts for the company.
Of course Western Copper and Gold may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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 firstname.lastname@example.org.