Yahoo Finance A Scotgold Resources Limited (LON:SGZ) insider increased their holdings by 6.1% last year
Viewing insider transactions for Scotgold Resources Limited's (LON:SGZ ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Scotgold Resources
The Last 12 Months Of Insider Transactions At Scotgold Resources
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman Peter Hetherington bought UK£116k worth of shares at a price of UK£0.77 per share. That means that an insider was happy to buy shares at above the current price of UK£0.60. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Peter Hetherington was the only individual insider to buy during the last year.
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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Scotgold Resources
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Scotgold Resources insiders own 63% of the company, currently worth about UK£22m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Scotgold Resources Tell Us?
The fact that there have been no Scotgold Resources insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Scotgold Resources insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Scotgold Resources. At Simply Wall St, we've found that Scotgold Resources has 4 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.
But note: Scotgold 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.
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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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