FPX Nickel Corp. (CVE:FPX) shareholders (or potential shareholders) will be happy to see that insider Allyn knoche recently bought a whopping CA$2.0m worth of stock, at a price of CA$0.55. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 15%.
The Last 12 Months Of Insider Transactions At FPX Nickel
Notably, that recent purchase by Allyn knoche is the biggest insider purchase of FPX Nickel shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of CA$0.58. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
While FPX Nickel insiders bought shares during the last year, they didn't sell. Their average price was about CA$0.32. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!
FPX Nickel is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of FPX Nickel
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. FPX Nickel insiders own about CA$40m worth of shares. That equates to 38% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About FPX Nickel Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest FPX Nickel insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing FPX Nickel. Case in point: We've spotted 3 warning signs for FPX Nickel you should be aware of.
But note: FPX Nickel 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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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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