How Much Are Gold Standard Ventures Corp (TSE:GSV) Insiders Spending On Buying Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Gold Standard Ventures Corp (TSE:GSV).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. 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'.

View our latest analysis for Gold Standard Ventures

Gold Standard Ventures Insider Transactions Over The Last Year

In fact, the recent purchase by Co-Founder Jonathan Awde was not their only acquisition of Gold Standard Ventures shares this year. Earlier in the year, they paid CA$1.22 per share in a CA$100k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$1.00). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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.

Happily, we note that in the last year insiders paid CA$270k for 228.48k shares. But insiders sold 25206 shares worth CA$26k. In total, Gold Standard Ventures insiders bought more than they sold over the last year. 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!

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).

Insiders at Gold Standard Ventures Have Bought Stock Recently

There was some insider buying at Gold Standard Ventures over the last quarter. They bought CA$91k worth in that time. On the other hand, Independent Director William Threlkeld sold CA$26k worth of shares. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.

Insider Ownership of Gold Standard Ventures

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Gold Standard Ventures insiders own 1.9% of the company, worth about CA$5.1m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Gold Standard Ventures Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Gold Standard Ventures insiders are expecting a bright future. Of course, the future is what matters most. So if you are interested in Gold Standard Ventures, you should check out this free report on analyst forecasts for the company.

But note: Gold Standard Ventures 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

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. Thank you for reading.