Nasdaq
華爾街日報Insiders See AU$800.9k Investment In True North Copper Jump Last Week
True North Copper Limited (ASX:TNC) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a AU$8.0m rise in the company's market capitalisation, translating to a gain of 67% on their initial investment. In other words, the original AU$800.9k purchase is now worth AU$1.33m.
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.
The Last 12 Months Of Insider Transactions At True North Copper
The Independent Non-Executive Chairman Paul Cronin made the biggest insider purchase in the last 12 months. That single transaction was for AU$319k worth of shares at a price of AU$0.34 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.52), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While True North Copper insiders bought shares during the last year, they didn't sell. 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!
View our latest analysis for True North Copper
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.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. From looking at our data, insiders own AU$2.9m worth of True North Copper stock, about 3.9% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.
So What Does This Data Suggest About True North Copper Insiders?
It doesn't really mean much that no insider has traded True North Copper shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more True North Copper stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing True North Copper. When we did our research, we found 5 warning signs for True North Copper (3 are concerning!) that we believe deserve your full attention.
But note: True North Copper 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.