Independent Director of Tuktu Resources Picks Up 101% More Stock

Even if it's not a huge purchase, we think it was good to see that Robert Dales, the Independent Director of Tuktu Resources Ltd. (CVE:TUK) recently shelled out CA$101k to buy stock, at CA$0.09 per share. Even though that isn't a massive buy, it did increase their holding by 101%, which is arguably a good sign.

View our latest analysis for Tuktu Resources

The Last 12 Months Of Insider Transactions At Tuktu Resources

Notably, that recent purchase by Robert Dales is the biggest insider purchase of Tuktu Resources shares that we've seen in the last year. That means that even when the share price was higher than CA$0.09 (the recent price), an insider wanted to purchase shares. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Tuktu Resources insiders were buying shares, but not selling. 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!

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.

Insider Ownership Of Tuktu Resources

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 Tuktu Resources insiders own about CA$1.8m worth of shares (which is 7.6% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Tuktu Resources Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Tuktu Resources insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tuktu Resources. Every company has risks, and we've spotted 5 warning signs for Tuktu Resources (of which 2 are a bit concerning!) you should know about.

But note: Tuktu Resources 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.