Abraham Jonker Bought 1.4% More Shares In CoTec Holdings

Investors who take an interest in CoTec Holdings Corp. (CVE:CTH) should definitely note that the CFO & Corporate Secretary, Abraham Jonker, recently paid CA$1.46 per share to buy CA$157k worth of the stock. While that’s a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.4%.

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The Last 12 Months Of Insider Transactions At CoTec Holdings

In the last twelve months, the biggest single purchase by an insider was when President Julian Treger bought CA$180k worth of shares at a price of CA$0.78 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$1.50. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.

In the last twelve months CoTec Holdings insiders were buying shares, but not selling. They paid about CA$0.89 on average. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today’s share 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!

See our latest analysis for CoTec Holdings

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that CoTec Holdings insiders own 11% of the company, worth about CA$20m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

So What Do The CoTec Holdings Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest CoTec Holdings insiders are well aligned, and that they may think the share price is too low. 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. For example – CoTec Holdings has 3 warning signs we think you should be aware of.

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.