Robert Kopple Bought 7.6% More Shares In World Copper

Even if it's not a huge purchase, we think it was good to see that Robert Kopple, the Director of World Copper Ltd. (CVE:WCU) recently shelled out CA$125k to buy stock, at CA$0.05 per share. Although the purchase is not a big one, increasing their shareholding by only 7.6%, it can be interpreted as a good sign.

Check out our latest analysis for World Copper

The Last 12 Months Of Insider Transactions At World Copper

Notably, that recent purchase by Director Robert Kopple was not the only time they bought World Copper shares this year. Earlier in the year, they paid CA$0.07 per share in a CA$1.0m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.06). 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 23.42m shares for CA$1.7m. But they sold 1.80m shares for 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

World Copper is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

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. World Copper insiders own about CA$2.3m worth of shares. That equates to 17% of the company. 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 World Copper Insiders?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of World Copper we think they are probably pretty confident of a bright 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 5 warning signs for World Copper (4 are a bit concerning!) that we believe deserve your full attention.

Of course World Copper may not be the best stock to buy. So you may wish to see this free collection of high quality 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.