Stock Analysis

Insider Buying: The Teck Resources Limited (TSE:TECK.B) Independent Chair of the Board Just Bought 27% More Shares

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Whilst it may not be a huge deal, we thought it was good to see that the Teck Resources Limited (TSE:TECK.B) Independent Chair of the Board, Sheila Murray, recently bought CA$106k worth of stock, for CA$49.50 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 27%.

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Teck Resources Insider Transactions Over The Last Year

The Independent Director Tracey McVicar made the biggest insider purchase in the last 12 months. That single transaction was for CA$222k worth of shares at a price of CA$44.35 each. So it's clear an insider wanted to buy, at around the current price, which is CA$46.31. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Teck Resources insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 7.14k shares for CA$328k. But they sold 9.00k shares for CA$466k. Robin Sheremeta divested 9.00k shares over the last 12 months at an average price of CA$51.77. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

TSX:TECK.B Insider Trading Volume March 16th 2023

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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. It appears that Teck Resources insiders own 0.1% of the company, worth about CA$35m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Teck Resources Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Teck Resources stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Teck Resources makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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. When we did our research, we found 2 warning signs for Teck Resources (1 doesn't sit too well with us!) that we believe deserve your full attention.

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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, but not derivative transactions.

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