Elemental Altus Royalties Reaches CA$366m Market Cap Benefiting Insider Stock Buying

Last week, Elemental Altus Royalties Corp. (CVE:ELE) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 12% last week, resulting in a CA$39m increase in the company's market worth, implying a 41% gain on their initial purchase. In other words, the original US$229.6k purchase is now worth US$323.3k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Our free stock report includes 2 warning signs investors should be aware of before investing in Elemental Altus Royalties. Read for free now.

Elemental Altus Royalties Insider Transactions Over The Last Year

The CEO & Executive Director Frederick Augustus Ronald Peter Bell made the biggest insider purchase in the last 12 months. That single transaction was for CA$73k worth of shares at a price of CA$1.01 each. Even though the purchase was made at a significantly lower price than the recent price (CA$1.49), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Elemental Altus Royalties insiders bought shares during the last year, they didn't sell. 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!

View our latest analysis for Elemental Altus Royalties

Elemental Altus Royalties is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Elemental Altus Royalties Boast High 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. It appears that Elemental Altus Royalties insiders own 4.1% of the company, worth about CA$15m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Elemental Altus Royalties Insider Transactions Indicate?

The fact that there have been no Elemental Altus Royalties insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Elemental Altus Royalties and we see no evidence to suggest they are worried about the future. 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. Our analysis shows 2 warning signs for Elemental Altus Royalties (1 is concerning!) and we strongly recommend you look at these before investing.

Of course Elemental Altus Royalties 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 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.