Yahoo Finance Insiders saw their CA$4.2m investment bump up to CA$6.5m after P2 Gold Inc. (CVE:PGLD) soared 32% last week
P2 Gold Inc. (CVE:PGLD) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 32%, resulting in a CA$13m rise in the company's market capitalisation. In other words, the original CA$4.2m purchase is now worth CA$6.5m.
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.
Check out our latest analysis for P2 Gold
P2 Gold Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Director & Chief Exploration Officer Kenneth McNaughton bought CA$2.5m worth of shares at a price of CA$0.50 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.79), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 8.18m shares worth CA$4.2m. On the other hand they divested 30.00k shares, for CA$20k. Overall, P2 Gold insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
P2 Gold Insiders Are Selling The Stock
We have seen a bit of insider selling at P2 Gold, over the last three months. Co-Founder & Director Neville Dastoor only netted CA$20k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that P2 Gold insiders own 26% of the company, worth about CA$14m. 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 Does This Data Suggest About P2 Gold Insiders?
We did not see any insider buying in the last three months, but we did see selling. But given the selling was modest, we're not worried. However, our analysis of transactions over the last year is heartening. Insiders own shares in P2 Gold and we see no evidence to suggest they are worried about 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. For instance, we've identified 6 warning signs for P2 Gold (4 shouldn't be ignored) you should be aware of.
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.
