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Looking at Latin Metals Inc.'s (CVE:LMS ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Latin Metals
The Last 12 Months Of Insider Transactions At Latin Metals
Notably, that recent purchase by Robert Kopple is the biggest insider purchase of Latin Metals shares that we've seen in the last year. That implies that an insider found the current price of CA$0.07 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Latin Metals share holders is that an insider was buying at near the current price. Robert Kopple was the only individual insider to buy shares in the last twelve months.
Robert Kopple purchased 4.78m shares over the year. The average price per share was CA$0.071. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Latin Metals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Latin Metals insiders own 42% of the company, worth about CA$2.4m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Latin Metals Insider Transactions Indicate?
The recent insider purchase is heartening. 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 Latin Metals insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Latin Metals. Every company has risks, and we've spotted 4 warning signs for Latin Metals (of which 2 shouldn't be ignored!) you should know about.