Insider Buyers At SPC Nickel Recover Some Losses, But Still Down CA$178k

Insiders who bought CA$327.5k worth of SPC Nickel Corp. (CVE:SPC) stock in the last year recovered part of their losses as the stock rose by 50% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at CA$178k since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

We've discovered 6 warning signs about SPC Nickel. View them for free.

SPC Nickel Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director William Shaver for CA$200k worth of shares, at about CA$0.05 per share. That means that an insider was happy to buy shares at above the current price of CA$0.03. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months SPC Nickel insiders were buying shares, but not selling. The average buy price was around CA$0.066. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. 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 SPC Nickel

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Have SPC Nickel Insiders Traded Recently?

There was some insider buying at SPC Nickel over the last quarter. Insiders shelled out CA$12k for shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does SPC Nickel Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests SPC Nickel insiders own 4.2% of the company, worth about CA$245k. I generally like to see higher levels of ownership.

So What Do The SPC Nickel Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think SPC Nickel insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SPC Nickel. At Simply Wall St, we've found that SPC Nickel has 6 warning signs (5 are a bit unpleasant!) that deserve your attention before going any further with your analysis.

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.