Insider Buyers At Crest Resources Sitting On CA$943k Profit

Insiders who bought Crest Resources Inc. (CSE:CRES) in the last 12 months may probably not pay attention to the stock's recent 23% drop. After accounting for the recent loss, the CA$1.18m worth of shares they purchased is now worth CA$2.12m, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Crest Resources

Crest Resources Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairperson Emma Fairhurst for CA$334k worth of shares, at about CA$0.04 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.085. 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.

In the last twelve months insiders purchased 24.98m shares for CA$1.2m. But they sold 7.79m shares for CA$340k. In the last twelve months there was more buying than selling by Crest Resources insiders. They paid about CA$0.047 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Are Crest Resources Insiders Buying Or Selling?

The last three months saw some Crest Resources insider selling. The selling netted CA$42k for insiders. But they spent CA$32k on buying, too. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

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. Crest Resources insiders own about CA$1.2m worth of shares (which is 46% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Crest Resources Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Crest Resources insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 5 warning signs with Crest Resources and understanding them should be part of your investment process.

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 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.