CoTec Holdings Independent Non-Executive Chairman Acquires 5.2% More Stock

Even if it's not a huge purchase, we think it was good to see that Raffaele Salvatore Genovese, the Independent Non-Executive Chairman of CoTec Holdings Corp. (CVE:CTH) recently shelled out CA$73k to buy stock, at CA$0.49 per share. Although the purchase is not a big one, increasing their shareholding by only 5.2%, it can be interpreted as a good sign.

See our latest analysis for CoTec Holdings

The Last 12 Months Of Insider Transactions At CoTec Holdings

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Thomas Albanese for CA$102k worth of shares, at about CA$0.75 per share. That means that even when the share price was higher than CA$0.60 (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 867.40k shares worth CA$506k. But they sold 120.00k shares for CA$57k. In total, CoTec Holdings insiders bought more than they sold over the last year. They paid about CA$0.58 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. 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!

CoTec Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does CoTec Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. CoTec Holdings insiders own about CA$11m worth of shares. That equates to 28% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The CoTec Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. 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 CoTec Holdings shares, given these transactions (along with notable insider ownership of the company). While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for CoTec Holdings you should know about.

Of course CoTec Holdings 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 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.