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Insider Buying: The Galway Metals Inc. (CVE:GWM) Chief Geologist & Director Just Bought 15% More Shares

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Whilst it may not be a huge deal, we thought it was good to see that the Galway Metals Inc. (CVE:GWM) Chief Geologist & Director, Michael Sutton, recently bought CA$98k worth of stock, for CA$0.40 per share. That purchase might not be huge but it did increase their holding by 15%.

See our latest analysis for Galway Metals

Galway Metals Insider Transactions Over The Last Year

In fact, the recent purchase by Michael Sutton was the biggest purchase of Galway Metals 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$0.40). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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. We note that Michael Sutton was also the biggest seller.

In the last twelve months insiders purchased 1.52m shares for CA$858k. But insiders sold 31.67k shares worth CA$18k. In total, Galway Metals insiders bought more than they sold over the last year. The average buy price was around CA$0.56. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

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 Galway Metals

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Galway Metals insiders own 13% of the company, worth about CA$10m. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Galway Metals Insiders?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Galway Metals we think they are probably pretty confident of a bright future. 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. When we did our research, we found 5 warning signs for Galway Metals (2 can't be ignored!) that we believe deserve your full attention.

But note: Galway Metals 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.

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