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Even if it's not a huge purchase, we think it was good to see that Raffaele Salvatore Genovese, the Independent Non-Executive Chairman of CoTec Holdings Corp. (CVE:CTH) recently shelled out CA$73k to buy stock, at CA$0.49 per share. Although the purchase is not a big one, increasing their shareholding by only 5.2%, it can be interpreted as a good sign.
Check out our latest analysis for CoTec Holdings
CoTec Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Thomas Albanese for CA$102k worth of shares, at about CA$0.75 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.54). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 974.40k shares worth CA$562k. On the other hand they divested 120.00k shares, for CA$57k. In total, CoTec Holdings insiders bought more than they sold over the last year. Their average price was about CA$0.58. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
CoTec Holdings 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.
Does CoTec Holdings Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 29% of CoTec Holdings shares, worth about CA$12m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The CoTec Holdings Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest CoTec Holdings 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 CoTec Holdings. While conducting our analysis, we found that CoTec Holdings has 2 warning signs and it would be unwise to ignore them.