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Over the last year, a good number of insiders have significantly increased their holdings in World Copper Ltd. (CVE:WCU). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for World Copper
World Copper Insider Transactions Over The Last Year
The Director Robert Kopple made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.0m worth of shares at a price of CA$0.07 each. That means that even when the share price was higher than CA$0.07 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for 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.
Over the last year, we can see that insiders have bought 19.03m shares worth CA$1.4m. But insiders sold 1.80m shares worth 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 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.
World Copper Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at World Copper. Overall, two insiders shelled out CA$237k for shares in the company -- and none sold. This makes one think the business has some good points.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. World Copper insiders own about CA$2.2m worth of shares. That equates to 18% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At World Copper Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in World Copper shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - World Copper has 5 warning signs we think you should be aware of.