Fireweed Metals Insiders Land Bargain With Gains Of CA$1.4m

Insiders who bought Fireweed Metals Corp. (CVE:FWZ) in the last 12 months may probably not pay attention to the stock's recent 10% drop. Reason being, despite the recent loss, insiders original purchase value of CA$2.19m is now worth CA$3.62m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Fireweed Metals

The insider Larry Childress made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.4m worth of shares at a price of CA$1.80 each. We do like to see buying, but this purchase was made at well below the current price of CA$2.88. 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.

In the last twelve months Fireweed 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Fireweed 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

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Fireweed Metals insiders own about CA$86m worth of shares. That equates to 14% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Fireweed Metals Tell Us?

It doesn't really mean much that no insider has traded Fireweed Metals shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Fireweed Metals and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Fireweed Metals is showing 3 warning signs in our investment analysis, and 2 of those don't sit too well with us...

Of course Fireweed Metals 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.