Torq Resources Insiders Recover Some Losses, Which Stand At CA$106k

Insiders who purchased CA$441.9k worth of Torq Resources Inc. (CVE:TORQ) shares over the past year recouped some of their losses after price gained 18% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled CA$106k 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.

Check out our latest analysis for Torq Resources

Torq Resources Insider Transactions Over The Last Year

The CEO & Chairman Shawn Wallace made the biggest insider purchase in the last 12 months. That single transaction was for CA$100k worth of shares at a price of CA$0.10 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.10). 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. In our view, the price an insider pays for shares is very important. 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 insiders purchased 3.36m shares for CA$442k. But they sold 10.00k shares for CA$4.2k. In the last twelve months there was more buying than selling by Torq Resources insiders. Their average price was about CA$0.13. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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.

Insiders At Torq Resources Have Bought Stock Recently

Over the last quarter, Torq Resources insiders have spent a meaningful amount on shares. Overall, two insiders shelled out CA$250k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Does Torq Resources Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Torq Resources insiders own about CA$1.6m worth of shares (which is 13% of the company). We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Torq Resources Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Torq Resources stock. 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. For example, Torq Resources has 5 warning signs (and 3 which make us uncomfortable) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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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.

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