Bullish Copper Fox Metals Insiders Loaded Up On CA$1.96m Of Stock

In the last year, multiple insiders have substantially increased their holdings of Copper Fox Metals Inc. (CVE:CUU) stock, indicating that insiders’ optimism about the company’s prospects has increased.

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.

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Copper Fox Metals Insider Transactions Over The Last Year

The Independent Director Ernesto Echavarria made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.8m worth of shares at a price of CA$0.65 each. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.62). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Copper Fox Metals insiders were buying shares, but not selling. 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!

See our latest analysis for Copper Fox Metals

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Copper Fox Metals Have Bought Stock Recently

It’s good to see that Copper Fox Metals insiders have made notable investments in the company’s shares. In total, insiders bought CA$1.9m worth of shares in that time, and we didn’t record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Does Copper Fox Metals Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. Copper Fox Metals insiders own 59% of the company, currently worth about CA$215m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Copper Fox Metals Insider Transactions Indicate?

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 on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Copper Fox Metals insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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. In terms of investment risks, we’ve identified 2 warning signs with Copper Fox Metals and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.