True North Copper Non-Executive Chairman Acquires 22% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the True North Copper Limited (ASX:TNC) Non-Executive Chairman, Paul Cronin, recently bought AU$100k worth of stock, for AU$0.23 per share. That purchase might not be huge but it did increase their holding by 22%.

Our free stock report includes 6 warning signs investors should be aware of before investing in True North Copper. Read for free now.

True North Copper Insider Transactions Over The Last Year

Notably, that recent purchase by Non-Executive Chairman Paul Cronin was not the only time they bought True North Copper shares this year. Earlier in the year, they paid AU$0.34 per share in a AU$319k purchase. That means that an insider was happy to buy shares at above the current price of AU$0.24. 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 True North Copper 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!

Check out our latest analysis for True North Copper

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.

Does True North Copper Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests True North Copper insiders own 3.2% of the company, worth about AU$965k. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.

What Might The Insider Transactions At True North Copper Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. 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 True North Copper stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 6 warning signs for True North Copper (of which 4 are potentially serious!) you should know about.

But note: True North Copper may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.