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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Canada Cobalt Works Inc. (CVE:CCW).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Canada Cobalt Works Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Director, Jacques Monette, for CA$348k worth of shares, at about CA$0.87 per share. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (CA$0.28). So it may not shed much light on insider confidence at current levels.
We note that in the last year insiders divested 478k shares for a total of CA$391k. In the last year Canada Cobalt Works insiders didn’t buy any company stock. The chart below shows insider transactions (by 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!
I will like Canada Cobalt Works better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Are Canada Cobalt Works Insiders Buying Or Selling?
The last three months saw some Canada Cobalt Works insider selling. Director Robert Setter only netted CA$10k selling shares, in that period. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn’t enough for us to put any weight on it.
Insider Ownership of Canada Cobalt Works
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. Based on our data, Canada Cobalt Works insiders have about 1.5% of the stock, worth approximately CA$330k. I generally like to see higher levels of ownership.
So What Do The Canada Cobalt Works Insider Transactions Indicate?
We did not see any insider buying in the last three months, but we did see selling. But given the selling was modest, we’re not worried. We’re a little cautious about the insider selling at Canada Cobalt Works. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course Canada Cobalt Works 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 aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.