Forsys Metals Gains 14%, Insider Trades Reap Benefit

Forsys Metals Corp. (TSE:FSY) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 14%, resulting in a CA$15m rise in the company's market capitalisation, translating to a gain of 76% on their initial investment. As a result, the stock they originally bought for CA$326.2k is now worth CA$572.7k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Forsys Metals

The Independent Director Pierfranco Malpenga made the biggest insider purchase in the last 12 months. That single transaction was for CA$96k worth of shares at a price of CA$0.28 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.49. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Forsys Metals insiders were buying shares, but not selling. 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!

See our latest analysis for Forsys Metals

Forsys Metals is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Forsys Metals Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 7.2% of Forsys Metals shares, worth about CA$8.7m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Do The Forsys Metals Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Forsys Metals insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Forsys Metals. At Simply Wall St, we've found that Forsys Metals has 5 warning signs (2 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

But note: Forsys Metals 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 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.