Spartan Metals Stock Down 17% But Insiders Still In CA$570k Profit

Insiders who bought Spartan Metals Corp. (CVE:W) stock lover the last 12 months are probably not as affected by last week’s 17% loss. Reason being, despite the recent loss, insiders original purchase value of CA$470.4k is now worth CA$1.04m.

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.

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The Last 12 Months Of Insider Transactions At Spartan Metals

The Independent Director Burton Egger made the biggest insider purchase in the last 12 months. That single transaction was for CA$123k worth of shares at a price of CA$0.30 each. That means that an insider was happy to buy shares at around the current price of CA$0.32. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Spartan Metals insiders decided to buy shares at close to current prices.

Spartan Metals insiders may have bought shares in the last year, but they didn't sell any. Their average price was about CA$0.14. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

See our latest analysis for Spartan Metals

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Insiders At Spartan Metals Have Bought Stock Recently

It's good to see that Spartan Metals insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$358k worth of shares. This is a positive in our book as it implies some confidence.

Does Spartan Metals Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Spartan Metals insiders own 30% of the company, worth about CA$3.9m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Spartan Metals Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Spartan Metals shares, given these transactions (along with notable insider ownership of the company). 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. For example - Spartan Metals has 4 warning signs we think you should be aware of.

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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.