Independent Director of Founders Metals Picks Up 14% More Stock

Investors who take an interest in Founders Metals Inc. (CVE:FDR) should definitely note that the Independent Director, Vijay N. Kirpalani, recently paid CA$5.93 per share to buy CA$566k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 14%.

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The Last 12 Months Of Insider Transactions At Founders Metals

Notably, that recent purchase by Vijay N. Kirpalani is the biggest insider purchase of Founders Metals shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of CA$6.22. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Founders Metals insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Vijay N. Kirpalani.

Vijay N. Kirpalani bought a total of 145.40k shares over the year at an average price of CA$5.17. You can see the insider transactions (by companies and individuals) 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!

Check out our latest analysis for Founders Metals

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Founders 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. It appears that Founders Metals insiders own 4.6% of the company, worth about CA$34m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Founders Metals Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Founders Metals 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. You'd be interested to know, that we found 2 warning signs for Founders Metals and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.