We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Altiplano Metals Inc (CVE:APN).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
The Last 12 Months Of Insider Transactions At Altiplano Metals
Independent Director Sean Mager made the biggest insider sale in the last 12 months. That single transaction was for CA$136k worth of shares at a price of CA$0.36 each. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of CA$0.17. So it is hard to draw any strong conclusion from it.
In the last twelve months insiders purchased 90.00k shares for CA$27k. On the other hand they divested 575.43k shares, for CA$203k. All up, insiders sold more shares in Altiplano Metals than they bought, over the last year. The average sell price was around CA$0.35. It is certainly not great to see that insiders have sold shares in the company. But the selling was at much higher prices than the current share price (CA$0.17), so it probably doesn’t tell us a lot about the value on offer today. You can see the insider transactions over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Altiplano Metals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Have Altiplano Metals Insiders Traded Recently?
We’ve only seen a tiny insider purchase valued at CA$5.6k, in the last three months. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.
Does Altiplano Metals Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. Altiplano Metals insiders own 8.3% of the company, worth about CA$685k. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Altiplano Metals Insiders?
We note a that there has been a tad more insider buying than selling, recently. But overall the difference isn’t worth writing home about. The insider transactions at Altiplano Metals are not inspiring us to buy. And we’re not picking up on high enough insider ownership to give us any comfort. Along with insider transactions, I recommend checking if Altiplano Metals is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.