Yahoo Finance Eric Sprott of Ely Gold Royalties Inc. (CVE:ELY) Just Spent CA$1.9m On Shares
Those following along with Ely Gold Royalties Inc. (CVE:ELY) will no doubt be intrigued by the recent purchase of shares by insider Eric Sprott, who spent a stonking CA$1.9m on stock at an average price of CA$0.93. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 36%.
View our latest analysis for Ely Gold Royalties
The Last 12 Months Of Insider Transactions At Ely Gold Royalties
In fact, the recent purchase by Eric Sprott was the biggest purchase of Ely Gold Royalties shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.62). 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 is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Eric Sprott was the only individual insider to buy over the year.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Ely Gold Royalties 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.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Ely Gold Royalties insiders own 9.8% of the company, worth about CA$6.8m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Ely Gold Royalties Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Ely Gold Royalties insiders are reasonably well aligned, and optimistic for the future. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
But note: Ely Gold Royalties 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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