Yahoo Finance Insider Stock Buying Reaches CA$5.59m On Lavras Gold
In the last year, multiple insiders have substantially increased their holdings of Lavras Gold Corp. (CVE:LGC) stock, indicating that insiders' optimism about the company's prospects has increased.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Lavras Gold
The Last 12 Months Of Insider Transactions At Lavras Gold
The insider Eric Sprott made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.7m worth of shares at a price of CA$1.35 each. Even though the purchase was made at a significantly lower price than the recent price (CA$1.53), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Lavras Gold insiders were buying shares, but not selling. The average buy price was around CA$1.09. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 Lavras Gold Have Bought Stock Recently
It's good to see that Lavras Gold insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$2.9m worth of shares. This is a positive in our book as it implies some confidence.
Insider Ownership Of Lavras 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. Lavras Gold insiders own about CA$24m worth of shares. That equates to 30% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Lavras Gold Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Lavras Gold insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lavras Gold. For instance, we've identified 5 warning signs for Lavras Gold (2 are concerning) you should be aware of.
Of course Lavras 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
