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Insiders who purchased CA$1.67m worth of World Copper Ltd. (CVE:WCU) shares over the past year recouped some of their losses after price gained 38% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled CA$364k since the time of purchase.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for World Copper
The Last 12 Months Of Insider Transactions At World Copper
Over the last year, we can see that the biggest insider purchase was by Director Robert Kopple for CA$1.0m worth of shares, at about CA$0.07 per share. That means that an insider was happy to buy shares at above the current price of CA$0.055. 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 23.70m shares for CA$1.7m. But they sold 1.80m shares for CA$180k. In the last twelve months there was more buying than selling by World Copper insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At World Copper Have Bought Stock Recently
Over the last quarter, World Copper insiders have spent a meaningful amount on shares. Director Robert Kopple spent CA$245k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.
Insider Ownership Of World Copper
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that World Copper insiders own 18% of the company, worth about CA$2.2m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.