Insider Spends CA$93k Buying More Shares In Cornish Metals

Even if it's not a huge purchase, we think it was good to see that John McGloin, the Independent Director of Cornish Metals Inc. (CVE:CUSN) recently shelled out CA$93k to buy stock, at CA$0.15 per share. While that isn't the hugest buy, it actually boosted their shareholding by 1,125%, which is good to see.

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Cornish Metals Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Director Anthony Trahar bought CA$112k worth of shares at a price of CA$0.14 per share. So it's clear an insider wanted to buy, at around the current price, which is CA$0.14. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Cornish Metals share holders is that insiders were buying at near the current price.

In the last twelve months Cornish Metals insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) 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!

See our latest analysis for Cornish Metals

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

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Cornish Metals insiders own about CA$11m worth of shares (which is 5.9% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Cornish Metals Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Cornish Metals insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cornish Metals. Case in point: We've spotted 3 warning signs for Cornish Metals you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.

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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.