Yahoo Finance Insiders who bought in the last 12 months lose an additional CA$40k as Contact Gold Corp. (CVE:C) drops to CA$5.3m
Insiders who acquired CA$134k worth of Contact Gold Corp.'s (CVE:C) stock at an average price of CA$0.021 in the past 12 months may be dismayed by the recent 25% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth CA$94k which is not ideal.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Contact Gold
Contact Gold Insider Transactions Over The Last Year
The Independent Chairman of the Board John Dorward made the biggest insider purchase in the last 12 months. That single transaction was for CA$100k worth of shares at a price of CA$0.02 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.015). 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 always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Contact Gold insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Contact Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Contact Gold Insiders Bought Stock Recently
It's good to see that Contact Gold insiders have made notable investments in the company's shares. In total, insiders bought CA$122k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Does Contact 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 Contact Gold insiders own about CA$331k worth of shares (which is 6.3% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Contact 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Contact Gold insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 6 warning signs for Contact Gold you should be aware of, and 5 of them are a bit concerning.
Of course Contact 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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