CoTec Holdings Insiders Land Bargain With Gains Of CA$311k

Insiders who purchased CoTec Holdings Corp. (CVE:CTH) shares in the past 12 months are unlikely to be deeply impacted by the stock's 11% decline over the past week. Even after accounting for the recent loss, the CA$744.5k worth of stock purchased by them is now worth CA$1.06m or in other words, their investment continues to give good returns.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

CoTec Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when President Julian Treger bought CA$180k worth of shares at a price of CA$0.78 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.91. 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.

CoTec Holdings insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$0.64. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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 CoTec Holdings

CoTec Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

CoTec Holdings Insiders Bought Stock Recently

It's good to see that CoTec Holdings insiders have made notable investments in the company's shares. Overall, four insiders shelled out CA$337k for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership Of CoTec Holdings

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. Insiders own 17% of CoTec Holdings shares, worth about CA$18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At CoTec Holdings Tell Us?

The recent insider purchases are 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. Given that insiders also own a fair bit of CoTec Holdings we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 3 warning signs we've spotted with CoTec Holdings (including 2 which shouldn't be ignored).

But note: CoTec Holdings 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.