Insider Stock Buyers At Quebec Rare Earth Elements Recouped Some Losses This Week

Insiders who purchased CA$602.7k worth of Quebec Rare Earth Elements Corp. (CSE:QREE) shares over the past year recouped some of their losses after price gained 18% last week. However, total losses seen by insiders are still CA$236k since the time of purchase.

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.

Check out our latest analysis for Quebec Rare Earth Elements

The Last 12 Months Of Insider Transactions At Quebec Rare Earth Elements

Over the last year, we can see that the biggest insider purchase was by Founder & Independent Non-Executive Chairman John Jentz for CA$124k worth of shares, at about CA$0.07 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.065). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Quebec Rare Earth Elements insiders may have bought shares in the last year, but they didn't sell any. They paid about CA$0.11 on average. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Quebec Rare Earth Elements Insiders Bought Stock Recently

It's good to see that Quebec Rare Earth Elements insiders have made notable investments in the company's shares. Specifically, Founder & Independent Non-Executive Chairman John Jentz bought CA$101k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Insider Ownership Of Quebec Rare Earth Elements

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. Quebec Rare Earth Elements insiders own 66% of the company, currently worth about CA$2.2m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Quebec Rare Earth Elements Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Quebec Rare Earth Elements insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. For example, Quebec Rare Earth Elements has 4 warning signs (and 3 which don't sit too well with us) we think you should know about.

Of course Quebec Rare Earth Elements 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.