Insiders Buying CoTec Holdings Might Wish They Invested More, Stock Gains 10%

Insiders who bought CoTec Holdings Corp. (CVE:CTH) stock in the last 12 months were richly rewarded last week. The company’s market value increased by CA$15m as a result of the stock’s 10% gain over the same period. As a result, the stock they originally bought for CA$483.3k is now worth CA$912.0k.

Although we don’t think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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CoTec Holdings Insider Transactions Over The Last Year

The President Julian Treger made the biggest insider purchase in the last 12 months. That single transaction was for CA$180k worth of shares at a price of CA$0.78 each. Even though the purchase was made at a significantly lower price than the recent price (CA$1.48), we still think insider buying is a positive. 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.

CoTec Holdings insiders may have bought shares in the last year, but they didn’t sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for CoTec Holdings

CoTec Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of CoTec Holdings

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that CoTec Holdings insiders own 13% of the company, worth about CA$20m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The CoTec Holdings Insider Transactions Indicate?

It doesn’t really mean much that no insider has traded CoTec Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don’t see anything to make us think CoTec Holdings insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. At Simply Wall St, we found 3 warning signs for CoTec Holdings that deserve your attention before buying any shares.

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.