Insider Stock Buying Reaches US$22.4m On Barrick Gold

Over the last year, a good number of insiders have significantly increased their holdings in Barrick Gold Corporation (TSE:ABX). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

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.

Check out our latest analysis for Barrick Gold

Barrick Gold Insider Transactions Over The Last Year

The President, Dennis Bristow, made the biggest insider sale in the last 12 months. That single transaction was for CA$4.9m worth of shares at a price of CA$23.15 each. That means that an insider was selling shares at slightly below the current price (CA$24.63). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 3.4% of Dennis Bristow's stake. Notably Dennis Bristow was also the biggest buyer, having purchased CA$22m worth of shares.

In the last twelve months insiders purchased 1.08m shares for CA$22m. On the other hand they divested 478.12k shares, for CA$11m. Overall, Barrick Gold insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Barrick Gold Insiders Bought Stock Recently

Over the last quarter, Barrick Gold insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought CA$14m worth of shares. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Barrick Gold

Many investors like to check how much of a company is owned by 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. Barrick Gold insiders own 0.6% of the company, currently worth about CA$275m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Barrick Gold Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Barrick Gold. Looks promising! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 1 warning sign for Barrick Gold that deserve your attention before buying any shares.

But note: Barrick Gold 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 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.