We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Copperstone Resources AB (STO:COPP B).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Check out our latest analysis for Copperstone Resources
The Last 12 Months Of Insider Transactions At Copperstone Resources
Over the last year, we can see that the biggest insider purchase was by Director & CEO Michael Mattsson for kr1.9m worth of shares, at about kr0.70 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being kr0.44). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Michael Mattsson. Notably Michael Mattsson was also the biggest seller.
Michael Mattsson bought 3.9m shares over the last 12 months at an average price of kr0.69. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Copperstone Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Copperstone Resources insiders own about kr18m worth of shares (which is 8.8% of the company). Whilst better than nothing, we're not overly impressed by these holdings.