Whilst it may not be a huge deal, we thought it was good to see that the Canadian Phosphate Limited (ASX:CP8) Non-Executive Chairman, Stuart Richardson, recently bought AU$110k worth of stock, for AU$0.022 per share. That purchase might not be huge but it did increase their holding by 35%.

View our latest analysis for Canadian Phosphate

The Last 12 Months Of Insider Transactions At Canadian Phosphate

Notably, that recent purchase by Stuart Richardson is the biggest insider purchase of Canadian Phosphate shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of AU$0.033. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Canadian Phosphate 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 25% of Canadian Phosphate shares, worth about AU$2.6m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Canadian Phosphate Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Canadian Phosphate we think they are probably pretty confident of a bright 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. Be aware that Canadian Phosphate is showing 5 warning signs in our investment analysis, and 3 of those are a bit unpleasant...

Of course Canadian Phosphate 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 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.