Chairman of Quartz Mountain Resources Picks Up 4.3% More Stock

Investors who take an interest in Quartz Mountain Resources Ltd. (CVE:QZM) should definitely note that the Chairman, Robert Dickinson, recently paid CA$0.42 per share to buy CA$364k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 4.3%.

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Quartz Mountain Resources Insider Transactions Over The Last Year

Notably, that recent purchase by Chairman Robert Dickinson was not the only time they traded Quartz Mountain Resources shares this year. They previously made a sale of -CA$1.8m worth of shares at a price of CA$0.20 per share. That means that even when the share price was below the current price of CA$0.65, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 31% of Robert Dickinson's holding.

Over the last year, we can see that insiders have bought 4.42m shares worth CA$1.6m. But they sold 9.00m shares for CA$1.8m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Quartz Mountain Resources

I will like Quartz Mountain Resources better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider 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. It appears that Quartz Mountain Resources insiders own 38% of the company, worth about CA$17m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Quartz Mountain Resources Insiders?

The recent insider purchases are heartening. But we can't say the same for the transactions over the last 12 months. The more recent transactions are a positive, but Quartz Mountain Resources insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. 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. When we did our research, we found 5 warning signs for Quartz Mountain Resources (4 are a bit unpleasant!) that we believe deserve your full attention.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.