We wouldn't blame Sandstorm Gold Ltd. (TSE:SSL) shareholders if they were a little worried about the fact that Nolan Watson, the Co-founder recently netted about $3.5m selling shares at an average price of $9.25.
The Last 12 Months Of Insider Transactions At Sandstorm Gold
Notably, that recent sale by Nolan Watson is the biggest insider sale of Sandstorm Gold shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of CA$8.70. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year, we can see that insiders have bought 122200 shares worth CA$435k. But they sold 1363700 for CA$11m. All up, insiders sold more shares in Sandstorm Gold than they bought, over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Sandstorm Gold better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Sandstorm Gold Boast High Insider Ownership?
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. Sandstorm Gold insiders own about CA$21m worth of shares. That equates to 1.4% 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.
So What Do The Sandstorm Gold Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. But since Sandstorm Gold is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Sandstorm Gold may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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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