Insider Stock Buying Of World Copper Delivers Return On CA$1.39m Investment

Insiders who purchased World Copper Ltd. (CVE:WCU) shares in the past 12 months are unlikely to be deeply impacted by the stock's 22% decline over the past week. Even after accounting for the recent loss, the CA$1.39m worth of stock purchased by them is now worth CA$1.66m or in other words, their investment continues to give good returns.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for World Copper

The Last 12 Months Of Insider Transactions At World Copper

The Director Robert Kopple made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.0m worth of shares at a price of CA$0.07 each. Even though the purchase was made at a significantly lower price than the recent price (CA$0.09), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid CA$1.4m for 18.49m shares. But insiders sold 1.80m shares worth CA$180k. Overall, World Copper insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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.

Insiders At World Copper Have Bought Stock Recently

We saw some World Copper insider buying shares in the last three months. Director Robert Kopple bought CA$200k worth in that time. However, Chairman Hendrik van Alphen netted CA$180k for sales. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.

Insider Ownership Of World Copper

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that World Copper insiders own 18% of the company, worth about CA$3.6m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About World Copper Insiders?

We note that there's been a little more insider selling than buying, recently. But the difference is small, and thus, not concerning. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in World Copper and we see no evidence to suggest they are worried about the future. 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. When we did our research, we found 6 warning signs for World Copper (4 are concerning!) that we believe deserve your full attention.

But note: World Copper 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.