Quite a few insiders have dramatically grown their holdings in Libero Copper & Gold Corporation (CVE:LBC) over the past 12 months. An insider’s optimism about the company’s prospects is a positive sign.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Libero Copper & Gold
Over the last year, we can see that the biggest insider purchase was by Executive Chairman Ian Slater for CA$700k worth of shares, at about CA$0.50 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.29). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. We note that Ian Slater was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 2.50m shares for CA$1.1m. But they sold 1.40m shares for CA$700k. In total, Libero Copper & Gold insiders bought more than they sold over the last year. They paid about CA$0.42 on average. 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!
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.
Libero Copper & Gold Insiders Bought Stock Recently
Over the last quarter, Libero Copper & Gold insiders have spent a meaningful amount on shares. Executive Chairman Ian Slater spent CA$322k on stock, and there wasn’t any selling. This makes one think the business has some good points.
Insider Ownership Of Libero Copper & Gold
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Libero Copper & Gold insiders own 5.9% of the company, worth about CA$1.3m. Whilst better than nothing, we’re not overly impressed by these holdings.
What Might The Insider Transactions At Libero Copper & Gold Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Libero Copper & Gold stock. 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 Libero Copper & Gold (2 don’t sit too well with us!) and we strongly recommend you look at these before investing.
Of course Libero Copper & Gold may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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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