Quebec Rare Earth Elements Slides As Insider Purchases Lose Another CA$294k

Insiders who acquired CA$475.8k worth of Quebec Rare Earth Elements Corp.'s (CSE:QREE) stock at an average price of CA$0.12 in the past 12 months may be dismayed by the recent 18% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth CA$181.6k, which is not great.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Quebec Rare Earth Elements Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Founder & Vice President of Process & Engineering Sylvain Duchesne for CA$100k worth of shares, at about CA$0.15 per share. That means that even when the share price was higher than CA$0.045 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

In the last twelve months Quebec Rare Earth Elements insiders were buying shares, but not selling. Their average price was about CA$0.12. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Quebec Rare Earth Elements

Quebec Rare Earth Elements is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Quebec Rare Earth Elements Have Bought Stock Recently

We saw some Quebec Rare Earth Elements insider buying shares in the last three months. Founder & Independent Non-Executive Chairman John Jentz bought CA$18k worth of shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Does Quebec Rare Earth Elements Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Quebec Rare Earth Elements insiders own 62% of the company, currently worth about CA$1.7m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Quebec Rare Earth Elements Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Quebec Rare Earth Elements insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 5 warning signs (4 are a bit concerning!) that you ought to be aware of before buying any shares in Quebec Rare Earth Elements.

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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.