Those following along with Barrick Gold Corporation (TSE:ABX) will no doubt be intrigued by the recent purchase of shares by Dennis Bristow, President of the company, who spent a stonking CA$4.4m on stock at an average price of CA$21.97. While that only increased their holding size by 3.3%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At Barrick Gold
In fact, the recent purchase by Dennis Bristow was the biggest purchase of Barrick Gold shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of CA$22.47 per share to be enticing. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Barrick Gold insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 1.09m shares for CA$23m. But insiders sold 248.55k shares worth CA$7.6m. In the last twelve months there was more buying than selling by Barrick Gold insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Barrick Gold
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Barrick Gold insiders own about CA$250m worth of shares (which is 0.6% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Barrick Gold Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Barrick Gold. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Barrick Gold is showing 3 warning signs in our investment analysis, and 1 of those is a bit unpleasant...
Of course Barrick 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.
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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.
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