Insider Sellers Might Regret Selling Copper Fox Metals Shares at a Lower Price Than Current Market Value

Even though Copper Fox Metals Inc. (CVE:CUU) has fallen by 12% over the past week , insiders who sold CA$767k worth of stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of CA$0.44 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Copper Fox Metals

The Last 12 Months Of Insider Transactions At Copper Fox Metals

In the last twelve months, the biggest single purchase by an insider was when Independent Director Ernesto Echavarria bought CA$636k worth of shares at a price of CA$0.22 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.26. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 3.41m shares worth CA$754k. But they sold 1.72m shares for CA$767k. All up, insiders sold more shares in Copper Fox Metals than they bought, 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insiders At Copper Fox Metals Have Bought Stock Recently

There has been significantly more insider buying, than selling, at Copper Fox Metals, over the last three months. In fact, three insiders bought CA$745k worth of shares. But insiders only sold shares worth CA$38k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Copper Fox Metals insiders own 60% of the company, worth about CA$91m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Copper Fox Metals Tell Us?

It's certainly positive to see the recent insider purchases. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Copper Fox Metals you should know about.

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.