Yahoo Finance Need To Know: Dynacor Gold Mines Inc. (TSE:DNG) Insiders Have Been Selling Shares
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Dynacor Gold Mines Inc. (TSE:DNG).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
See our latest analysis for Dynacor Gold Mines
Dynacor Gold Mines Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the President, Jean Martineau, sold CA$242k worth of shares at a price of CA$1.78 per share. So we know that an insider sold shares at around the present share price of CA$1.75. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. The only individual insider seller over the last year was Jean Martineau.
Happily, we note that in the last year insiders paid CA$40k for 22525 shares. On the other hand they divested 192200 shares, for CA$342k. Jean Martineau sold a total of 192200 shares over the year at an average price of US$1.78. The chart below shows insider transactions (by 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!
I will like Dynacor Gold Mines better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Dynacor Gold Mines Insiders Bought Stock Recently
There was some insider buying at Dynacor Gold Mines over the last quarter. Insiders bought US$35k worth of shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
Insider Ownership of Dynacor Gold Mines
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Dynacor Gold Mines insiders have about 3.9% of the stock, worth approximately CA$2.7m. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Dynacor Gold Mines Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. Our analysis of Dynacor Gold Mines insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Dynacor Gold Mines 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
