Yahoo Finance Canyon Resources Insiders May Regret Not Buying More, Market Cap Hits AU$63m \
Canyon Resources Limited (ASX:CAY) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 13%, resulting in a AU$7.1m rise in the company's market capitalisation. In other words, the original AU$250k purchase is now worth AU$338k.
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.
Check out our latest analysis for Canyon Resources
Canyon Resources Insider Transactions Over The Last Year
The Independent Director Wei Su made the biggest insider purchase in the last 12 months. That single transaction was for AU$200k worth of shares at a price of AU$0.045 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.062. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While Canyon Resources insiders bought shares during the last year, they didn't sell. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Canyon Resources
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 14% of Canyon Resources shares, worth about AU$9.0m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Canyon Resources Tell Us?
It doesn't really mean much that no insider has traded Canyon Resources shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Canyon Resources insiders bought more shares in the company. 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. Our analysis shows 4 warning signs for Canyon Resources (2 are significant!) and we strongly recommend you look at them before investing.
But note: Canyon Resources 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.
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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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