Despite Quartz Mountain Resources' Pullback, Insiders Still Gained CA$225k

Insiders who purchased Quartz Mountain Resources Ltd. (CVE:QZM) shares in the past 12 months are unlikely to be deeply impacted by the stock's 10% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of CA$472.4k is now worth CA$697.4k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

The Last 12 Months Of Insider Transactions At Quartz Mountain Resources

Over the last year, we can see that the biggest insider purchase was by Chairman Robert Dickinson for CA$364k worth of shares, at about CA$0.42 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.62. 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.

While Quartz Mountain Resources insiders bought shares during the last year, they didn't sell. 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!

Check out our latest analysis for Quartz Mountain Resources

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

Insider Ownership Of Quartz Mountain Resources

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Quartz Mountain Resources insiders own 41% of the company, worth about CA$18m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

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

It doesn't really mean much that no insider has traded Quartz Mountain Resources shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Quartz Mountain Resources insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for 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. When we did our research, we found 5 warning signs for Quartz Mountain Resources (3 are concerning!) that we believe deserve your full attention.

Of course Quartz Mountain Resources 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.