Insider Buyers At Copper Fox Metals Likely Disappointed With 12% Slide

Insiders who bought CA$1.3m worth of Copper Fox Metals Inc.'s (CVE:CUU) stock at an average buy price of CA$0.20 over the last year may be disappointed by the recent 12% decrease in the stock. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only CA$1.1m.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Copper Fox Metals

Copper Fox Metals Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Ernesto Echavarria bought CA$1.2m worth of shares at a price of CA$0.20 per share. That means that an insider was happy to buy shares at above the current price of CA$0.18. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 6.37m shares worth CA$1.3m. On the other hand they divested 77.30k shares, for CA$15k. In total, Copper Fox Metals insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Copper Fox Metals is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Copper Fox Metals Insiders Bought Stock Recently

There has been significantly more insider buying, than selling, at Copper Fox Metals, over the last three months. Insiders spent CA$1.3m on shares. On the other hand, Independent Director R. Mackay-Dunn netted CA$15k by selling. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Does Copper Fox Metals Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Copper Fox Metals insiders own 60% of the company, currently worth about CA$60m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Copper Fox Metals Insider Transactions Indicate?

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 Copper Fox Metals insiders are well aligned, and quite possibly think the share price is too low. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Copper Fox Metals. For instance, we've identified 3 warning signs for Copper Fox Metals (1 makes us a bit uncomfortable) you should be aware of.

But note: Copper Fox 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 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.