When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Tincorp Metals Inc.'s (CVE:TIN) instance, it's good news for shareholders.

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.

Check out our latest analysis for Tincorp Metals

The Last 12 Months Of Insider Transactions At Tincorp Metals

In fact, the recent purchase by Rui Feng was the biggest purchase of Tincorp Metals shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is CA$0.25. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for Tincorp Metals share holders is that insiders were buying at near the current price.

Tincorp Metals insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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.

Insiders At Tincorp Metals Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Tincorp Metals. Director Rui Feng spent CA$295k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.

Insider Ownership Of Tincorp Metals

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Tincorp Metals insiders own about CA$2.2m worth of shares (which is 13% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Tincorp Metals Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Tincorp Metals insiders are reasonably well aligned, 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. Our analysis shows 4 warning signs for Tincorp Metals (2 are concerning!) and we strongly recommend you look at these before investing.