Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Carlin Gold Corporation (CVE:CGD), that sends out a positive message to the company’s shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Carlin Gold
The Last 12 Months Of Insider Transactions At Carlin Gold
The President Kent Livingstone made the biggest insider purchase in the last 12 months. That single transaction was for CA$242k worth of shares at a price of CA$0.15 each. That means that an insider was happy to buy shares at above the current price of CA$0.15. 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. To us, it’s very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Carlin Gold insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Carlin Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Carlin Gold
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Carlin Gold insiders own about CA$636k worth of shares. That equates to 23% 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.
What Might The Insider Transactions At Carlin Gold Tell Us?
The fact that there have been no Carlin Gold insider transactions recently certainly doesn’t bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in Carlin Gold and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Carlin Gold. In terms of investment risks, we’ve identified 5 warning signs with Carlin Gold and understanding them should be part of your investment process.
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.
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