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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Tuktu Resources Ltd.'s (CVE:TUK) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Tuktu Resources
Tuktu Resources Insider Transactions Over The Last Year
Notably, that recent purchase by Robert Dales is the biggest insider purchase of Tuktu Resources shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of CA$0.09. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for 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 Tuktu Resources insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Tuktu Resources 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.
Tuktu Resources Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Tuktu Resources. Overall, seven insiders shelled out CA$376k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership Of Tuktu Resources
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Tuktu Resources insiders own 7.6% of the company, worth about CA$1.8m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Tuktu Resources Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Tuktu Resources stock. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 5 warning signs for Tuktu Resources (2 are potentially serious!) and we strongly recommend you look at them before investing.