Yahoo Finance President Andrew Wray Just Bought Shares In Golden Star Resources Ltd. (TSE:GSC)
Whilst it may not be a huge deal, we thought it was good to see that the Golden Star Resources Ltd. (TSE:GSC) President, Andrew Wray, recently bought CA$132k worth of stock, for CA$3.88 per share. Even though that isn't a massive buy, it did increase their holding by 91%, which is a arguably a good sign.
View our latest analysis for Golden Star Resources
Golden Star Resources Insider Transactions Over The Last Year
In fact, the recent purchase by President Andrew Wray was not their only acquisition of Golden Star Resources shares this year. They previously made an even bigger purchase of CA$159k worth of shares at a price of CA$4.24 per share. That means that even when the share price was higher than CA$3.91 (the recent price), an insider wanted to purchase shares. 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 is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Golden Star Resources insiders were buying shares, but not selling. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Golden Star Resources is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Golden Star Resources insiders own 0.5% of the company, worth about CA$2.1m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.
So What Do The Golden Star Resources Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Golden Star Resources insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Golden Star Resources.
But note: Golden Star Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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.
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