First Phosphate Insiders Placed Bullish Bets Worth CA$938.1k

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of First Phosphate Corp. (CSE:PHOS), it sends a favourable message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for First Phosphate

The Last 12 Months Of Insider Transactions At First Phosphate

The Independent Chairman Laurence Zeifman made the biggest insider purchase in the last 12 months. That single transaction was for CA$265k worth of shares at a price of CA$0.22 each. Even though the purchase was made at a significantly lower price than the recent price (CA$0.29), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

First Phosphate insiders may have bought shares in the last year, but they didn't sell any. They paid about CA$0.29 on average. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

First Phosphate is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of First Phosphate

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that First Phosphate insiders own 54% of the company, worth about CA$8.4m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The First Phosphate Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, First Phosphate insiders feel good about the company's 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 help with this, we've discovered 5 warning signs (3 make us uncomfortable!) that you ought to be aware of before buying any shares in First Phosphate.

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.