Insiders who acquired US$254k worth of Inca One Gold Corp.'s (CVE:INCA) stock at an average price of US$0.40 in the past 12 months may be dismayed by the recent 16% price decline. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$197k, which is not what they expected.
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.
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. That means that even when the share price was higher than CA$0.31 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 634.50k shares worth CA$254k. On the other hand they divested 311.50k shares, for CA$121k. 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!
Inca One Gold 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.
Inca One Gold Insiders Are Selling The Stock
The last three months saw some Inca One Gold insider selling. CA$37k worth of shares were sold by Independent Chairman of the Board Bruce Bragagnolo. But the good news is that there was purchasing too , worth CA$7.7k. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.
Does Inca One Gold Boast High 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. We usually like to see fairly high levels of insider ownership. Our data indicates that Inca One Gold insiders own about CA$1.1m worth of shares (which is 9.6% 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?
Our data shows a little more insider selling than buying in the last three months. But the difference isn't enough to have us worried. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Inca One Gold insiders bought more shares in the company. 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. To that end, you should learn about the 4 warning signs we've spotted with Inca One Gold (including 2 which shouldn't be ignored).
But note: Inca One 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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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.