Foremost Clean Energy Decline Means Insider Profits Down To CA$336k

Insiders who bought Foremost Clean Energy Ltd. (CSE:FAT) in the last 12 months may probably not pay attention to the stock's recent 12% drop. After accounting for the recent loss, the CA$527.9k worth of shares they purchased is now worth CA$864.2k, 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.

Check out our latest analysis for Foremost Clean Energy

Foremost Clean Energy Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chief Operating Officer Christina Barnard for CA$510k worth of shares, at about CA$3.40 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$3.30). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 261.88k shares worth CA$528k. But they sold 113.18k shares for CA$24k. In the last twelve months there was more buying than selling by Foremost Clean Energy insiders. Their average price was about CA$2.02. It is certainly positive to see that insiders have invested their own money 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!

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

Have Foremost Clean Energy Insiders Traded Recently?

Over the last three months, we've seen a bit of insider buying at Foremost Clean Energy. In that period insiders spent CA$8.4k on shares. On the other hand, President Jason Barnard sold CA$107 worth of shares. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.

Insider Ownership Of Foremost Clean Energy

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Foremost Clean Energy insiders own 8.9% of the company, worth about CA$1.9m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Foremost Clean Energy Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Foremost Clean Energy insiders are doubting the company. 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. Case in point: We've spotted 4 warning signs for Foremost Clean Energy you should be aware of, and 2 of these are a bit unpleasant.

Of course Foremost Clean Energy 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.