Valhalla Metals Loses CA$10.0m Market Value But Insiders See Windfall Of US$64k
Insiders who purchased Valhalla Metals Inc. (CVE:VMXX) shares in the past 12 months are unlikely to be deeply impacted by the stock's 12% decline over the past week. After taking the recent loss into consideration, the US$129.5k worth of stock they bought is now worth US$193.3k, indicating that their investment yielded a positive return.
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.
Valhalla Metals Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chairman of the Board Rick Van Nieuwenhuyse for CA$100k worth of shares, at about CA$0.65 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.97), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Valhalla Metals insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Valhalla Metals
Valhalla Metals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Valhalla Metals Have Bought Stock Recently
Over the last quarter, Valhalla Metals insiders have spent a meaningful amount on shares. Overall, two insiders shelled out CA$130k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Valhalla Metals insiders own 68% of the company, currently worth about CA$51m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Valhalla Metals Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Valhalla Metals. That's what I like to see! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 4 warning signs for Valhalla Metals you should be aware of, and 3 of these are significant.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
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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.