Did Carube Copper Corp. (CVE:CUC) Insiders Buy Up More Shares?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Carube Copper Corp. (CVE:CUC).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.
See our latest analysis for Carube Copper
The Last 12 Months Of Insider Transactions At Carube Copper
In the last twelve months, the biggest single sale by an insider was when the Chairman of the Board, Antony Manini, sold CA$242k worth of shares at a price of CA$0.035 per share. That means that an insider was selling shares at slightly below the current price (CA$0.045). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 58% of Antony Manini's stake. Notably Antony Manini was also the biggest buyer, having purchased CA$419k worth of shares.
In the last twelve months insiders purchased 8313298 shares for CA$419k. On the other hand they divested 6972051 shares, for CA$245k. Overall, Carube Copper insiders were net buyers last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders at Carube Copper Have Bought Stock Recently
Over the last quarter, Carube Copper insiders have spent a meaningful amount on shares. Overall, three insiders shelled out CA$125k for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership of Carube Copper
For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 10% of Carube Copper shares, worth about CA$821k, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Carube Copper Insiders?
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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Carube Copper stock. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course Carube 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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
