Insiders who bought CA$226.2k worth of Foremost Clean Energy Ltd.'s (CSE:FAT) stock at an average buy price of CA$3.14 over the last year may be disappointed by the recent 19% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth CA$54.7k which is not ideal.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Foremost Clean Energy Insider Transactions Over The Last Year
The Interim President David Cates made the biggest insider purchase in the last 12 months. That single transaction was for CA$204k worth of shares at a price of CA$3.40 each. That means that even when the share price was higher than CA$0.76 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 72.00k shares worth CA$226k. But insiders sold 30.00k shares worth CA$154k. Overall, Foremost Clean Energy insiders were net buyers during the last year. 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 Foremost Clean Energy
Foremost Clean Energy is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Are Foremost Clean Energy Insiders Buying Or Selling?
Over the last three months, we've seen a bit of insider buying at Foremost Clean Energy. Interim President David Cates purchased CA$12k worth of shares in that period. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. From what we can see in our data, insiders own only about CA$144k worth of Foremost Clean Energy shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
So What Does This Data Suggest About Foremost Clean Energy Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Foremost Clean Energy insiders are doubting 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. To that end, you should learn about the 6 warning signs we've spotted with Foremost Clean Energy (including 4 which shouldn't be ignored).
But note: Foremost Clean Energy 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 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.