Advertisement
Canada markets close in 3 minutes
  • S&P/TSX

    22,182.78
    +75.70 (+0.34%)
     
  • S&P 500

    5,260.05
    +11.56 (+0.22%)
     
  • DOW

    39,848.60
    +88.52 (+0.22%)
     
  • CAD/USD

    0.7386
    +0.0013 (+0.18%)
     
  • CRUDE OIL

    82.98
    +1.63 (+2.00%)
     
  • Bitcoin CAD

    95,928.29
    +2,841.52 (+3.05%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,240.70
    +28.00 (+1.27%)
     
  • RUSSELL 2000

    2,121.43
    +7.08 (+0.34%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • NASDAQ

    16,395.89
    -3.63 (-0.02%)
     
  • VOLATILITY

    13.04
    +0.26 (+2.03%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • CAD/EUR

    0.6842
    +0.0037 (+0.54%)
     

Multiple insiders bought White Gold Corp. (CVE:WGO) stock earlier this year, a positive sign for shareholders

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of White Gold Corp. (CVE:WGO), that sends out a positive message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for White Gold

White Gold Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President David D’Onofrio for CA$75k worth of shares, at about CA$0.80 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.47). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

ADVERTISEMENT

In the last twelve months White Gold insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and 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!

insider-trading-volume
insider-trading-volume

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.

Does White Gold Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that White Gold insiders own about CA$9.2m worth of shares (which is 13% of the company). We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At White Gold Tell Us?

The fact that there have been no White Gold insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if White Gold insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that White Gold is showing 6 warning signs in our investment analysis, and 3 of those don't sit too well with us...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.