Yahoo Finance Bullish Torex Gold Resources Inc. (TSE:TXG) insiders were rewarded last week as their US$787k investment inflated to US$788k
Insiders who bought Torex Gold Resources Inc. (TSE:TXG) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$75m as a result of the stock's 7.1% gain over the same period. As a result, their original purchase of US$787k worth of stock is now worth US$788k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Torex Gold Resources
Torex Gold Resources Insider Transactions Over The Last Year
The insider, Robin Bienenstock, made the biggest insider sale in the last 12 months. That single transaction was for CA$288k worth of shares at a price of CA$18.02 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of CA$13.22. So it may not tell us anything about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid CA$787k for 59.61k shares. On the other hand they divested 21.78k shares, for CA$389k. In total, Torex Gold Resources insiders bought more than they sold over the last year. 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 growing companies that insiders are buying.
Torex Gold Resources Insiders Bought Stock Recently
It's good to see that Torex Gold Resources insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$697k worth of shares. This makes one think the business has some good points.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Torex Gold Resources insiders have about 0.1% of the stock, worth approximately CA$1.6m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Torex Gold Resources Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Torex Gold Resources insiders are reasonably well aligned, and optimistic for the future. 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. Every company has risks, and we've spotted 1 warning sign for Torex Gold Resources you should know about.
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.
