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How Much Are Nevada Copper Corp. (TSE:NCU) Insiders Spending On Buying Shares?

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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Nevada Copper Corp. (TSE:NCU).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for Nevada Copper

The Last 12 Months Of Insider Transactions At Nevada Copper

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Evgenij Iorich bought CA$271k worth of shares at a price of CA$0.15 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.21. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Nevada Copper insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

Nevada Copper is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Nevada Copper

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. From looking at our data, insiders own CA$3.1m worth of Nevada Copper stock, about 0.7% of the company. We consider this fairly low insider ownership.

So What Does This Data Suggest About Nevada Copper Insiders?

The fact that there have been no Nevada Copper insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Nevada Copper stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Nevada Copper is showing 3 warning signs in our investment analysis, and 2 of those shouldn't be ignored...

But note: Nevada Copper 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, but not derivative transactions.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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