Insider Stock Buyers At SPC Nickel Recouped Some Losses This Week

Insiders who bought CA$122.5k worth of SPC Nickel Corp. (CVE:SPC) stock in the last year recovered part of their losses as the stock rose by 20% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling CA$96k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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SPC Nickel Insider Transactions Over The Last Year

The Independent Director Joseph Alger St-Jean made the biggest insider purchase in the last 12 months. That single transaction was for CA$111k worth of shares at a price of CA$0.22 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.03). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While SPC Nickel insiders bought shares during the last year, they didn't sell. Their average price was about CA$0.14. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out 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).

Insider Ownership Of SPC Nickel

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests SPC Nickel insiders own 2.5% of the company, worth about CA$271k. I generally like to see higher levels of ownership.

So What Do The SPC Nickel Insider Transactions Indicate?

It doesn't really mean much that no insider has traded SPC Nickel shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more SPC Nickel stock. 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. Every company has risks, and we've spotted 5 warning signs for SPC Nickel you should know about.

But note: SPC Nickel 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.