Potential World Copper Ltd. (CVE:WCU) shareholders may wish to note that the Chairman of the Board, Hendrik van Alphen, recently bought CA$203k worth of stock, paying CA$0.18 for each share. That’s a very solid buy in our book, and increased their holding by a noteworthy 40%.
See our latest analysis for World Copper
The Last 12 Months Of Insider Transactions At World Copper
In fact, the recent purchase by Hendrik van Alphen was the biggest purchase of World Copper shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of CA$0.20 per share to be enticing. 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. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we’re pleased to report that the insider purchases were made at close to current prices.
World Copper insiders may have bought shares in the last year, but they didn’t sell any. They paid about CA$0.24 on average. I’d consider this a positive as it suggests insiders see value at around the current price. 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 growing companies that insiders are buying.
Does World Copper Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 17% of the company, worth about CA$3.8m. 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 Do The World Copper Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give 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. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Case in point: We’ve spotted 5 warning signs for World Copper you should be aware of, and 1 of these is significant.
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, but not derivative transactions.
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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.
On April 15, 2021 and ending April 15,2023 Liviakis Financial Communications Inc. (LFC) was retained by World Copper in various consulting capacities including strategic management planning, investor relations and other business development responsibilities. LFC is compensated 20 thousand dollars per month. Officers and employees of LFC will buy or sell shares in World Copper prior, during or after this release. LFC advises World Copper but does not provide investment advice. LFC is not a registered investment advisor or broker-dealer. All material provided regarding World Copper including, but not limited to its history, corporate status, and other developments was prepared using information approved and signed off by World Copper management as approved for public dissemination. Although the information contained herein is believed to be reliable, LFC makes no warranties as to the accuracy of the description of any of the content herein and accepts no liability for how readers may choose to utilize it.