Executive Chairman Warren Newfield Just Bought 49% More Shares In Talon Metals Corp. (TSE:TLO)

Talon Metals Corp. (TSE:TLO) shareholders (or potential shareholders) will be happy to see that the Executive Chairman, Warren Newfield, recently bought a whopping CA$4.2m worth of stock, at a price of CA$0.69. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 49%.

Check out our latest analysis for Talon Metals

Talon Metals Insider Transactions Over The Last Year

Notably, that recent purchase by Warren Newfield is the biggest insider purchase of Talon Metals shares that we've seen in the last year. That means that even when the share price was higher than CA$0.68 (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. In our view, the price an insider pays for shares is very important. 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. We note that Warren Newfield was also the biggest seller.

In the last twelve months insiders purchased 6.57m shares for CA$4.5m. But they sold 3.50m shares for CA$2.6m. In total, Talon Metals insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Talon Metals

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Talon Metals insiders own about CA$19m worth of shares. That equates to 3.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Talon Metals Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Talon Metals we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Talon Metals. Every company has risks, and we've spotted 2 warning signs for Talon Metals (of which 1 is a bit concerning!) you should know about.

Of course Talon Metals 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, but not derivative transactions.

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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.