Stock Analysis

In spite of Canyon Resources Limited's recent pullback, insiders still gained about AU$12k after buying earlier this year.

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Insiders who bought Canyon Resources Limited (ASX:CAY) stock lover the last 12 months are probably not as affected by last week’s 14% loss. Reason being, despite the recent loss, insiders original purchase value of AU$250k is now worth AU$262k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Canyon Resources

The Last 12 Months Of Insider Transactions At Canyon Resources

In the last twelve months, the biggest single purchase by an insider was when Independent Director Wei Su bought AU$200k worth of shares at a price of AU$0.045 per share. That implies that an insider found the current price of AU$0.048 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Canyon Resources share holders is that insiders were buying at near the current price.

In the last twelve months Canyon Resources 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

ASX:CAY Insider Trading Volume March 29th 2023

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

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. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Canyon Resources insiders own 14% of the company, worth about AU$7.0m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Canyon Resources Tell Us?

It doesn't really mean much that no insider has traded Canyon Resources shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Canyon Resources insiders bought more shares in 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. To help with this, we've discovered 4 warning signs (2 can't be ignored!) that you ought to be aware of before buying any shares in Canyon Resources.

Of course Canyon Resources may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Valuation is complex, but we're helping make it simple.

Find out whether Canyon Resources is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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