Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of SPC Nickel Corp. (CVE:SPC), that sends out a positive message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for SPC Nickel

The Last 12 Months Of Insider Transactions At SPC Nickel

In the last twelve months, the biggest single purchase by an insider was when Independent Director William Shaver bought CA$200k worth of shares at a price of CA$0.05 per share. That means that an insider was happy to buy shares at above the current price of CA$0.04. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While SPC Nickel insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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.

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. From looking at our data, insiders own CA$268k worth of SPC Nickel stock, about 4.0% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.

What Might The Insider Transactions At SPC Nickel Tell Us?

It doesn't really mean much that no insider has traded SPC Nickel shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more SPC Nickel stock. 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. For instance, we've identified 6 warning signs for SPC Nickel (4 are a bit concerning) you should be aware of.