Insiders of Copper Fox Metals Getting Good Value On Their CA$3.80m Investment
Copper Fox Metals Inc. (CVE:CUU) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 18% resulting in a CA$71m addition to the company’s market value. Put another way, the original CA$3.80m acquisition is now worth CA$4.77m.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Copper Fox Metals Insider Transactions Over The Last Year
The Independent Director Ernesto Echavarria made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.8m worth of shares at a price of CA$0.60 each. We do like to see buying, but this purchase was made at well below the current price of CA$0.78. 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.
In the last twelve months Copper Fox 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!
View our latest analysis for Copper Fox Metals
Copper Fox 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.
Copper Fox Metals Insiders Bought Stock Recently
It's good to see that Copper Fox Metals insiders have made notable investments in the company's shares. Overall, three insiders shelled out CA$1.9m for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership
Many investors like to check how much of a company is owned by 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. It's great to see that Copper Fox Metals insiders own 59% of the company, worth about CA$235m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Copper Fox Metals Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Copper Fox Metals insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 3 warning signs for Copper Fox Metals (2 can't be ignored) you should be aware of.
But note: Copper Fox 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.