Gunnison Copper Decline Means Insider Profits Down To US$98k

Gunnison Copper Corp. (TSE:GCU) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 11% decline in the stock price. After accounting for the recent loss, the US$520.8k worth of shares they purchased is now worth US$618.5k, suggesting a good return on their investment.

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.

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The Last 12 Months Of Insider Transactions At Gunnison Copper

In the last twelve months, the biggest single purchase by an insider was when GM & Senior VP of Operations Robert Winton bought CA$84k worth of shares at a price of CA$0.19 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.27. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months Gunnison Copper insiders were buying shares, but not selling. The average buy price was around CA$0.23. To my mind it is good 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!

View our latest analysis for Gunnison Copper

Gunnison Copper is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Gunnison Copper Insiders Bought Stock Recently

It's good to see that Gunnison Copper insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$252k worth of shares. This makes one think the business has some good points.

Does Gunnison Copper 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Gunnison Copper insiders have about 3.8% of the stock, worth approximately CA$3.3m. We consider this fairly low insider ownership.

What Might The Insider Transactions At Gunnison Copper Tell Us?

The recent insider purchases are heartening. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Gunnison Copper insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Gunnison Copper has 4 warning signs (2 are potentially serious!) that deserve your attention before going any further with your analysis.

Of course Gunnison Copper 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.