Insiders Buying Tectonic Metals Might Wish They Invested More, Stock Gains 13%
Tectonic Metals Inc. (CVE:TECT) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 13%, resulting in a CA$38m rise in the company's market capitalisation, translating to a gain of 16% on their initial investment. In other words, the original CA$594.5k purchase is now worth CA$691.3k.
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.
Tectonic Metals Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Eira Thomas bought CA$500k worth of shares at a price of CA$2.15 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$2.50), 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.
In the last twelve months Tectonic Metals insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Tectonic 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.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data suggests Tectonic Metals insiders own 1.1% of the company, worth about CA$3.5m. We consider this fairly low insider ownership.
So What Do The Tectonic Metals Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Tectonic Metals stock. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Tectonic Metals has 3 warning signs we think you should be aware of.
Of course Tectonic Metals 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.