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Inca One Gold Corp. (CVE:INCA) Insiders Increased Their Holdings

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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Inca One Gold Corp. (CVE:INCA).

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. 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 Columbia 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 Inca One Gold

The Last 12 Months Of Insider Transactions At Inca One Gold

Over the last year, we can see that the biggest insider purchase was by Chief Financial Officer Kevin Hart for CA$145k worth of shares, at about CA$0.40 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.37). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid CA$263k for 653.88k shares. But they sold 414.50k shares for CA$224k. In total, Inca One Gold insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

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.

Insiders at Inca One Gold Have Bought Stock Recently

There has been significantly more insider buying, than selling, at Inca One Gold, over the last three months. In fact, two insiders bought CA$237k worth of shares. But we did see President Edward Kelly sell shares worth CA$84k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership of Inca One Gold

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data indicates that Inca One Gold insiders own about CA$2.0m worth of shares (which is 14% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Inca One Gold Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Inca One Gold stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 3 warning signs for Inca One Gold and we suggest you have a look.

Of course Inca One Gold may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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