Trade Alert: The Independent Chairman Of 5N Plus Inc. (TSE:VNP), Luc Bertrand, Has Just Spent US$227k Buying 5.2% More Shares
Potential 5N Plus Inc. (TSE:VNP) shareholders may wish to note that the Independent Chairman, Luc Bertrand, recently bought CA$227k worth of stock, paying CA$2.84 for each share. Although the purchase only increased their holding by 5.2%, it is still a solid purchase in our view.
View our latest analysis for 5N Plus
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$390k worth of shares at a price of CA$1.70 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$2.90), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While 5N Plus insiders bought shares during the last year, they didn't sell. They paid about CA$1.96 on average. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of 5N Plus
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. Insiders own 5.9% of 5N Plus shares, worth about CA$14m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At 5N Plus Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of 5N Plus we think they are probably pretty confident of a bright future. 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 5N Plus has 1 warning sign and it would be unwise to ignore this.
But note: 5N Plus 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.
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.
This article by Simply Wall St is general in nature. 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.
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