Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Intrepid Metals Corp. (CVE:INTR), it sends a favourable 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.
Over the last year, we can see that the biggest insider purchase was by insider Mark Morabito for CA$200k worth of shares, at about CA$0.35 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.67), we still think insider buying is a positive. 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.
Happily, we note that in the last year insiders paid CA$288k for 757.43k shares. On the other hand they divested 32.50k shares, for CA$20k. Overall, Intrepid Metals insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Intrepid Metals
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Over the last three months, we’ve seen a bit of insider buying at Intrepid Metals. Interim CEO & Chairman Matthew Lennox-King purchased CA$49k worth of shares in that period. It’s great to see that insiders are only buying, not selling. But the amount invested in the last three months isn’t enough for us too put much weight on it, as a single factor.
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. Based on our data, Intrepid Metals insiders have about 2.9% of the stock, worth approximately CA$2.3m. We consider this fairly low insider ownership.
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn’t worth writing home about. 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 Intrepid Metals insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Intrepid Metals (3 are potentially serious!) and we strongly recommend you look at them before investing.
