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From what we can see, insiders were net buyers in CuFe Ltd's (ASX:CUF ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for CuFe
CuFe Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Youfu Zhou for AU$224k worth of shares, at about AU$0.0097 per share. That means that an insider was happy to buy shares at above the current price of AU$0.009. 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Youfu Zhou was the only individual insider to buy shares in the last twelve months.
Youfu Zhou bought a total of 64.25m shares over the year at an average price of AU$0.0087. 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!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of CuFe
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. Insiders own 11% of CuFe shares, worth about AU$1.4m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At CuFe Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that CuFe insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CuFe. At Simply Wall St, we've found that CuFe has 4 warning signs (3 are concerning!) that deserve your attention before going any further with your analysis.