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The recent 14% drop in Inca One Gold Corp.'s (CVE:INCA) stock could come as a blow to insiders who purchased US$235k worth of stock at an average buy price of US$0.40 over the past 12 months. 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 US$142k which is not ideal.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Inca One Gold Insider Transactions Over The Last Year
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$0.24 (the recent price), an insider wanted to purchase shares. 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. 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.
In the last twelve months insiders purchased 591.50k shares for CA$235k. On the other hand they divested 158.50k shares, for CA$57k. Overall, Inca One Gold insiders were net buyers during the last year. 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).
Inca One Gold Insiders Are Selling The Stock
The last three months saw some Inca One Gold insider selling. Independent Director Rodney Stevens divested only CA$20k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn't bother us.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Inca One Gold insiders own about CA$889k worth of shares (which is 9.5% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Inca One Gold Insider Transactions Indicate?
We did not see any insider buying in the last three months, but we did see selling. However, the sales are not big enough to concern us at all. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Inca One Gold. At Simply Wall St, we've found that Inca One Gold has 5 warning signs (3 can't be ignored!) that deserve your attention before going any further with your analysis.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.