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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Copper Search Limited (ASX:CUS), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Copper Search
Copper Search Insider Transactions Over The Last Year
The Non-Executive Director Peter McIntyre made the biggest insider purchase in the last 12 months. That single transaction was for AU$100k worth of shares at a price of AU$0.13 each. That means that an insider was happy to buy shares at around the current price of AU$0.14. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Copper Search insiders decided to buy shares at close to current prices.
Copper Search insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Copper Search 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 Of Copper Search
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. Insiders own 14% of Copper Search shares, worth about AU$1.7m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Copper Search Insiders?
The fact that there have been no Copper Search insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Copper Search insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Copper Search. When we did our research, we found 6 warning signs for Copper Search (5 are a bit concerning!) that we believe deserve your full attention.