True North Copper Non-Executive Chairman Acquires 93% More Stock

Potential True North Copper Limited (ASX:TNC) shareholders may wish to note that the Non-Executive Chairman, Paul Cronin, recently bought AU$319k worth of stock, paying AU$0.34 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 93%.

See our latest analysis for True North Copper

The Last 12 Months Of Insider Transactions At True North Copper

In fact, the recent purchase by Paul Cronin was the biggest purchase of True North Copper shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (AU$0.40), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While True North Copper insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.41. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of True North Copper

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own AU$1.3m worth of True North Copper stock, about 2.7% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.

So What Does This Data Suggest About True North Copper Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that True North Copper insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing True North Copper. At Simply Wall St, we've found that True North Copper has 4 warning signs (2 are a bit unpleasant!) that deserve your attention before going any further with your analysis.

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.

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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.