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In the last year, multiple insiders have substantially increased their holdings of Rackla Metals Inc. (CVE:RAK) stock, indicating that insiders' optimism about the company's prospects has increased.
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 Rackla Metals
Rackla Metals Insider Transactions Over The Last Year
Notably, that recent purchase by Alejandro Gubbins Cox is the biggest insider purchase of Rackla Metals shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of CA$0.14. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Rackla Metals insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Rackla Metals 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.
Insiders At Rackla Metals Have Bought Stock Recently
Over the last quarter, Rackla Metals insiders have spent a meaningful amount on shares. Overall, two insiders shelled out CA$1.4m for shares in the company -- and none sold. That shows some optimism about the company's future.
Does Rackla Metals 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 31% of Rackla Metals shares, worth about CA$4.9m. 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 Does This Data Suggest About Rackla Metals Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Rackla Metals we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Rackla Metals is showing 5 warning signs in our investment analysis, and 4 of those shouldn't be ignored...