Insiders Of Leading Edge Materials Reap Rewards After Their Investment Jumps Another CA$1.5m

Last week, Leading Edge Materials Corp. (CVE:LEM) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 11% last week, resulting in a CA$4.6m increase in the company's market worth, implying a 100% gain on their initial purchase. As a result, the stock they originally bought for CA$1.50m is now worth CA$3.00m.

While insider transactions are not the most important thing when it comes to long-term investing, 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 Leading Edge Materials

Over the last year, we can see that the biggest insider purchase was by Director Eric Krafft for CA$1.3m worth of shares, at about CA$0.10 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.20), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 15.00m shares for CA$1.5m. On the other hand they divested 500.00k shares, for CA$50k. In total, Leading Edge Materials insiders bought more than they sold 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Leading Edge Materials

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.

Does Leading Edge Materials Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 39% of Leading Edge Materials shares, worth about CA$18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Leading Edge Materials Insider Transactions Indicate?

The fact that there have been no Leading Edge Materials insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in Leading Edge Materials and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 5 warning signs for Leading Edge Materials (3 can't be ignored!) and we strongly recommend you look at them before investing.

But note: Leading Edge Materials 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.