Chairman & Interim CEO of Western Copper and Gold Mark Smith Buys 164% More Shares
Potential Western Copper and Gold Corporation (TSE:WRN) shareholders may wish to note that the Chairman & Interim CEO, Mark Smith, recently bought CA$247k worth of stock, paying CA$2.17 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 164%.
The Last 12 Months Of Insider Transactions At Western Copper and Gold
Notably, that recent purchase by Mark Smith is the biggest insider purchase of Western Copper and Gold shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$2.07). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 366.70k shares for CA$1.1m. On the other hand they divested 7.00k shares, for CA$16k. In total, Western Copper and Gold insiders bought more than they sold over the last year. The average buy price was around CA$2.97. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Western Copper and Gold
Western Copper and Gold is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Western Copper and Gold
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. We usually like to see fairly high levels of insider ownership. Western Copper and Gold insiders own about CA$22m worth of shares. That equates to 4.5% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Western Copper and Gold Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Western Copper and Gold insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Western Copper and Gold. Our analysis shows 2 warning signs for Western Copper and Gold (1 is concerning!) and we strongly recommend you look at these before investing.
But note: Western Copper and Gold 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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