Yahoo Finance Quite a few insiders invested in Wesdome Gold Mines Ltd. (TSE:WDO) last year which is positive news for shareholders
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Wesdome Gold Mines Ltd. (TSE:WDO), it sends a favourable 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.
See our latest analysis for Wesdome Gold Mines
The Last 12 Months Of Insider Transactions At Wesdome Gold Mines
The Lead Independent Director, Charles Main, made the biggest insider sale in the last 12 months. That single transaction was for CA$174k worth of shares at a price of CA$8.69 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of CA$7.50. So it may not shed much light on insider confidence at current levels. Charles Main was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 46.05k shares worth CA$346k. But they sold 30.00k shares for CA$260k. In the last twelve months there was more buying than selling by Wesdome Gold Mines insiders. The average buy price was around CA$7.52. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Insiders At Wesdome Gold Mines Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Wesdome Gold Mines. Overall, three insiders shelled out CA$178k for shares in the company -- and none sold. This makes one think the business has some good points.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Wesdome Gold Mines insiders have about 0.5% of the stock, worth approximately CA$5.0m. We consider this fairly low insider ownership.
So What Do The Wesdome Gold Mines Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Wesdome Gold Mines insiders are reasonably well aligned, and optimistic for the future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Wesdome Gold Mines.
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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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.
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