We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Minaurum Gold Inc. (CVE:MGG), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
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The Last 12 Months Of Insider Transactions At Minaurum Gold
While there weren’t any large insider transactions in the last twelve months, it’s still worth looking at the trading.
We note that in the last year insiders divested 153k shares for a total of CA$61k. In the last year Minaurum Gold insiders didn’t buy any company stock. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders at Minaurum Gold Have Sold Stock Recently
The last three months saw some Minaurum Gold insider selling. Insiders divested only CA$61k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn’t enough for us to put any weight on it.
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Minaurum Gold insiders have about 3.5% of the stock, worth approximately CA$3.8m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Minaurum Gold Tell Us?
Insiders sold stock recently, but they haven’t been buying. And there weren’t any purchases to give us comfort, over the last year. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We’d certainly think twice before buying! Along with insider transactions, I recommend checking if Minaurum Gold is growing revenue. This free chart of historic revenue and earnings should make that easy.
But note: Minaurum 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.