Yahoo Finance Should You Take Comfort From Insider Transactions At Amarillo Gold Corporation (CVE:AGC)?
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Amarillo Gold Corporation (CVE:AGC), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
View our latest analysis for Amarillo Gold
Amarillo Gold Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President Michael Mutchler for CA$600k worth of shares, at about CA$0.28 per share. That means that an insider was happy to buy shares at above the current price. Their view may have changed since then, but at least it shows they felt optimistic at the time. It’s not at all bad to see insiders buy shares at or above current prices.
Over the last year, we can see that insiders have bought 3.61m shares worth CA$1.0m. On the other hand they divested 150.00k shares, for CA$41k. In total, Amarillo Gold insiders bought more than they sold over the last year. The average buy price was around CA$0.28. These transactions suggest that insiders have considered the current price of CA$0.25 attractive. You can see the insider transactions 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!
Amarillo Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Amarillo Gold Insiders Bought Stock Recently
Over the last three months, we’ve seen a bit of insider buying at Amarillo Gold. Insiders purchased CA$28k worth of shares in that period. It’s good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.
Insider Ownership of Amarillo Gold
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Amarillo Gold insiders own 14% of the company, currently worth about CA$3.9m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Amarillo Gold Insider Transactions Indicate?
Our data shows a little more insider buying than selling in the last three months. But overall the difference isn’t worth writing home about. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we’d be more comfortable if they owned more Amarillo Gold stock. Along with insider transactions, I recommend checking if Amarillo Gold is growing revenue. This free chart of historic revenue and earnings should make that easy.
But note: Amarillo 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
