When will we see insiders buying DCX....great to see management buying into CMM whom invested $1.1M yet to see their returns in DCX....

Simply Wall St.

Capricorn Metals Ltd (ASX:CMM) insider upped their holding by 0.6% earlier this year

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Simply Wall St

Fri., October 1, 2021, 8:10 a.m.·3 min read

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Viewing insider transactions for Capricorn Metals Ltd's (ASX:CMM ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.

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 Capricorn Metals

Capricorn Metals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Mark Clark for AU$144k worth of shares, at about AU$1.70 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$2.13), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Mark Clark bought a total of 205.85k shares over the year at an average price of AU$1.69. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume

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.

Does Capricorn 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. It appears that Capricorn Metals insiders own 16% of the company, worth about AU$122m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Capricorn Metals Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Capricorn Metals shares in the last quarter. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Capricorn Metals insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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.