Insiders who purchased West Cobar Metals Limited (ASX:WC1) earlier this year lose an additional AU$22k as the stock sinks to AU$0.14

By
Simply Wall St
Published
February 23, 2022
ASX:WC1
Source: Shutterstock

The recent 10.0% drop in West Cobar Metals Limited's (ASX:WC1) stock could come as a blow to insiders who purchased AU$76k worth of stock at an average buy price of AU$0.19 over the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth AU$54k, which is not great.

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.

See our latest analysis for West Cobar Metals

The Last 12 Months Of Insider Transactions At West Cobar Metals

There wasn't any very large single transaction over the last year, but we can still observe some trading.

Ronald Roberts purchased 400.00k shares over the year. The average price per share was AU$0.19. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
ASX:WC1 Insider Trading Volume February 23rd 2022

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).

Have West Cobar Metals Insiders Traded Recently?

In the last quarter there were insider sales totalling AU$14k. However that only slightly eclipses the AU$12k worth of purchases. The net selling is so small that it's hard to draw any conclusions from these recent transactions.

Does West Cobar Metals 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. We usually like to see fairly high levels of insider ownership. It appears that West Cobar Metals insiders own 39% of the company, worth about AU$2.2m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At West Cobar Metals Tell Us?

Our data shows a little more insider selling than buying in the last three months. But the difference isn't enough to have us worried. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think West Cobar Metals insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing West Cobar Metals. For instance, we've identified 4 warning signs for West Cobar Metals (3 shouldn't be ignored) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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