Yahoo Finance CoTec Holdings Insiders Added CA$785.8k Of Stock To Their Holdings
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of CoTec Holdings Corp. (CVE:CTH), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for CoTec Holdings
The Last 12 Months Of Insider Transactions At CoTec Holdings
The CFO & Corporate Secretary, Abraham Jonker, made the biggest insider sale in the last 12 months. That single transaction was for CA$345k worth of shares at a price of CA$0.53 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$0.47. So it is hard to draw any strong conclusion from it. Abraham Jonker was the only individual insider to sell shares in the last twelve months. Notably Abraham Jonker was also the biggest buyer, having purchased CA$786k worth of shares.
In the last twelve months insiders purchased 1.19m shares for CA$786k. On the other hand they divested 1.05m shares, for CA$653k. Overall, CoTec Holdings insiders were net buyers during the last year. Their average price was about CA$0.66. These transactions suggest that insiders have considered the current price attractive. 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!
CoTec Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
CoTec Holdings Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at CoTec Holdings. Director Erez Ichilov bought CA$25k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 32% of CoTec Holdings shares, worth about CA$8.4m. 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?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. Insiders own shares in CoTec Holdings and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CoTec Holdings. Be aware that CoTec Holdings is showing 3 warning signs in our investment analysis, and 1 of those is significant...
But note: CoTec Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
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