Independent Director of TDG Gold Michael Kosowan Buys 4.8% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the TDG Gold Corp. (CVE:TDG) Independent Director, Michael Kosowan, recently bought CA$70k worth of stock, for CA$0.14 per share. However, it only increased their shares held by 4.8%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for TDG Gold

TDG Gold Insider Transactions Over The Last Year

Notably, that recent purchase by Independent Director Michael Kosowan was not the only time they bought TDG Gold shares this year. They previously made an even bigger purchase of CA$150k worth of shares at a price of CA$0.30 per share. That means that an insider was happy to buy shares at above the current price of CA$0.14. 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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

TDG Gold insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around CA$0.22. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

TDG Gold 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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that TDG Gold insiders own 8.9% of the company, worth about CA$1.6m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The TDG Gold Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that TDG Gold insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 5 warning signs for TDG Gold (2 are a bit concerning) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

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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.