Yahoo Finance Trade Alert: Eric Sprott At Ely Gold Royalties Inc. (CVE:ELY), Has Just Spent CA$8.0m Buying 122% More Shares
Those following along with Ely Gold Royalties Inc. (CVE:ELY) will no doubt be intrigued by the recent purchase of shares by insider Eric Sprott, who spent a stonking CA$8.0m on stock at an average price of CA$0.63. That increased their holding by a full 122%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
Check out our latest analysis for Ely Gold Royalties
The Last 12 Months Of Insider Transactions At Ely Gold Royalties
Notably, that recent purchase by Eric Sprott is the biggest insider purchase of Ely Gold Royalties shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (CA$1.00), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Eric Sprott bought 14.70m shares over the last 12 months at an average price of CA$0.67. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Ely Gold Royalties 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. It appears that Ely Gold Royalties insiders own 12% of the company, worth about CA$15m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Ely Gold Royalties Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Ely Gold Royalties insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ely Gold Royalties. Case in point: We've spotted 5 warning signs for Ely Gold Royalties you should be aware of, and 1 of these doesn't sit too well with us.
Of course Ely Gold Royalties may not be the best stock to buy. So you may wish to see this free collection of high quality 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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