Insider Buying: The Wheaton Precious Metals Corp. (TSE:WPM) Non Independent Director Just Bought 25% More Shares

By
Simply Wall St
Published
March 19, 2022
TSX:WPM
Source: Shutterstock

Whilst it may not be a huge deal, we thought it was good to see that the Wheaton Precious Metals Corp. (TSE:WPM) Non Independent Director, Glenn Ives, recently bought CA$119k worth of stock, for CA$59.46 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 25%.

Check out our latest analysis for Wheaton Precious Metals

Wheaton Precious Metals Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Charles Jeannes, sold CA$684k worth of shares at a price of CA$54.71 per share. That means that even when the share price was below the current price of CA$60.14, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 76% of Charles Jeannes's holding. Charles Jeannes was the only individual insider to sell 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!

insider-trading-volume
TSX:WPM Insider Trading Volume March 19th 2022

I will like Wheaton Precious Metals better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Wheaton Precious Metals

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.1% of Wheaton Precious Metals shares, worth about CA$34m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Wheaton Precious Metals Tell Us?

The insider sales have outweighed the insider buying, at Wheaton Precious Metals, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Wheaton Precious Metals makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. 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. To help with this, we've discovered 2 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Wheaton Precious Metals.

But note: Wheaton Precious Metals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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