Yahoo Finance Bullish insiders at Contact Gold Corp. (CVE:C) loaded up on CA$750k of stock earlier this year
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 Contact Gold Corp. (CVE:C), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Contact Gold
Contact Gold Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Senior EVP & Director Andrew Farncomb bought CA$207k worth of shares at a price of CA$0.05 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.06), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 14.23m shares worth CA$750k. But insiders sold 1.38m shares worth CA$69k. Overall, Contact Gold insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Contact Gold 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.
Does Contact Gold Boast High 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. Our data indicates that Contact Gold insiders own about CA$1.3m worth of shares (which is 6.9% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Contact Gold Insiders?
It doesn't really mean much that no insider has traded Contact Gold shares in the last quarter. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Contact Gold insiders bought more shares in the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Contact Gold has 5 warning signs (2 are a bit concerning!) that deserve your attention before going any further with your analysis.
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, but not derivative transactions.
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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.
