Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Copperleaf Technologies Inc. (TSE:CPLF), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Copperleaf Technologies Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Rolf Dekleer for CA$97k worth of shares, at about CA$5.09 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$6.01), 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.
Over the last year, we can see that insiders have bought 110.86k shares worth CA$598k. But they sold 16.00k shares for CA$86k. In total, Copperleaf Technologies insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Copperleaf Technologies Have Bought Stock Recently
Over the last quarter, Copperleaf Technologies insiders have spent a meaningful amount on shares. We can see that Independent Director Michael Calyniuk paid CA$170k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 20% of Copperleaf Technologies shares, worth about CA$87m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Copperleaf Technologies Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Copperleaf Technologies insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Copperleaf Technologies has 2 warning signs and it would be unwise to ignore them.
Of course Copperleaf Technologies 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 of direct interests only, but not derivative transactions or indirect interests.
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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.