How Much Are Cerro de Pasco Resources Inc. (CSE:CDPR) Insiders Spending On Buying Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Cerro de Pasco Resources Inc. (CSE:CDPR), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for Cerro de Pasco Resources

Cerro de Pasco Resources Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Non-Independent Director Neil Ringdahl bought CA$100k worth of shares at a price of CA$0.40 per share. That means that an insider was happy to buy shares at around the current price of CA$0.44. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Cerro de Pasco Resources share holders is that insiders were buying at near the current price.

While Cerro de Pasco Resources insiders bought shares during the last year, they didn't sell. Their average price was about CA$0.34. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Cerro de Pasco Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Are Cerro de Pasco Resources Insiders Buying Or Selling?

There was only a small bit of insider buying, worth CA$350, in the last three months. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.

Insider Ownership of Cerro de Pasco Resources

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Cerro de Pasco Resources insiders own 15% of the company, worth about CA$17m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Cerro de Pasco Resources Insiders?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders own shares in Cerro de Pasco Resources and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for Cerro de Pasco Resources and we suggest you have a look.

Of course Cerro de Pasco Resources 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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