Yahoo Finance A number of insiders bought Trilogy Metals Inc. (TSE:TMQ) stock last year, which is great news for shareholders
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Trilogy Metals Inc.'s (TSE:TMQ) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Trilogy Metals
The Last 12 Months Of Insider Transactions At Trilogy Metals
The President Tony Giardini made the biggest insider purchase in the last 12 months. That single transaction was for CA$120k worth of shares at a price of CA$1.21 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.82). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 102.50k shares worth CA$123k. But they sold 55.00k shares for CA$41k. In the last twelve months there was more buying than selling by Trilogy Metals insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Trilogy Metals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Trilogy Metals Insiders Are Selling The Stock
We have seen a bit of insider selling at Trilogy Metals, over the last three months. VP, CFO & Corporate Secretary Elaine Sanders divested only CA$20k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.
Does Trilogy Metals Boast High 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. From our data, it seems that Trilogy Metals insiders own 10% of the company, worth about CA$12m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Trilogy Metals Insider Transactions Indicate?
Our data shows a little more insider selling, but no insider buying, in the last three months. However, the sales are not big enough to concern us at all. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Trilogy Metals insiders are doubting the company, and they do own shares. 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. At Simply Wall St, we've found that Trilogy Metals has 2 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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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