Have Fuerte Metals Insiders Been Selling Stock?

Anyone interested in Fuerte Metals Corp. (CVE:FMT) should probably be aware that the Independent Director, Scott Victor Hicks, recently divested CA$480k worth of shares in the company, at an average price of CA$9.61 each. The eyebrow raising move amounted to a reduction of 11% in their holding.

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Fuerte Metals Insider Transactions Over The Last Year

The insider Pierre Lassonde made the biggest insider purchase in the last 12 months. That single transaction was for CA$13m worth of shares at a price of CA$4.35 each. We do like to see buying, but this purchase was made at well below the current price of CA$9.69. 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.

In the last twelve months insiders purchased 3.86m shares for CA$16m. On the other hand they divested 50.00k shares, for CA$480k. In the last twelve months there was more buying than selling by Fuerte Metals insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Fuerte Metals

Fuerte 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.

Does Fuerte Metals Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It’s great to see that Fuerte Metals insiders own 15% of the company, worth about CA$210m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Fuerte Metals Insider Transactions Indicate?

An insider hasn’t bought Fuerte Metals stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So the recent selling doesn’t worry us. While it’s good to be aware of what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we’ve found that Fuerte Metals has 4 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.

Of course Fuerte Metals 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 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.