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Multiple insiders secured a larger position in Fireweed Metals Corp. (CVE:FWZ) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Fireweed Metals
Fireweed Metals Insider Transactions Over The Last Year
The insider Larry Childress made the biggest insider purchase in the last 12 months. That single transaction was for CA$3.7m worth of shares at a price of CA$1.10 each. We do like to see buying, but this purchase was made at well below the current price of CA$1.61. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Happily, we note that in the last year insiders paid CA$3.7m for 3.41m shares. But they sold 84.20k shares for CA$100k. In the last twelve months there was more buying than selling by Fireweed Metals insiders. 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!
Fireweed Metals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Fireweed Metals insiders own 19% of the company, worth about CA$57m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Fireweed Metals Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Fireweed Metals and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 4 warning signs for Fireweed Metals (of which 3 shouldn't be ignored!) you should know about.