It is not uncommon to see companies perform well in the years after insiders buy shares. 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 shareholders might well want to know whether insiders have been buying or selling shares in Constantine Metal Resources Ltd. (CVE:CEM).
Do Insider Transactions Matter?
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. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
The Last 12 Months Of Insider Transactions At Constantine Metal Resources
John Tognetti made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.0m worth of shares at a price of CA$0.68 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.44). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 1.8m shares worth CA$1.2m. But insiders sold 216k shares worth CA$105k. Overall, Constantine Metal Resources insiders were net buyers last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Constantine Metal Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Constantine Metal Resources Have Sold Stock Recently
The last three months saw some Constantine Metal Resources insider selling. Insiders divested only CA$33k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.
Does Constantine Metal Resources Boast High 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. Insiders own 25% of Constantine Metal Resources shares, worth about CA$4.9m. 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 Constantine Metal Resources Tell Us?
Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we're not concerned. However, our analysis of transactions over the last year is heartening. Insiders own shares in Constantine Metal Resources and we see no evidence to suggest they are worried about the future. 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 .
But note: Constantine Metal Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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