Yahoo Finance Quite a few insiders invested in Galway Metals Inc. (CVE:GWM) last year which is positive news 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 Galway Metals Inc. (CVE:GWM), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Galway Metals
The Last 12 Months Of Insider Transactions At Galway Metals
Notably, that recent purchase by Independent Director Joseph Cartafalsa was not the only time they bought Galway Metals shares this year. Earlier in the year, they paid CA$0.61 per share in a CA$55k purchase. That means that even when the share price was higher than CA$0.57 (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. Notably Joseph Cartafalsa was also the biggest seller.
Over the last year, we can see that insiders have bought 841.63k shares worth CA$629k. But insiders sold 8.00k shares worth CA$5.9k. In total, Galway Metals insiders bought more than they sold over the last year. They paid about CA$0.75 on average. These transactions suggest that insiders have considered the current price of CA$0.57 attractive. 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!
Galway Metals is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Galway Metals Insiders Bought Stock Recently
Over the last quarter, Galway Metals insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought CA$92k worth of shares. This makes one think the business has some good points.
Does Galway Metals Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Galway Metals insiders own about CA$14m worth of shares. That equates to 14% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Galway Metals Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Galway Metals shares, given these transactions (along with notable insider ownership of 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. Case in point: We've spotted 6 warning signs for Galway Metals you should be aware of, and 3 of these are concerning.
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.
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