Even if it’s not a huge purchase, we think it was good to see that Paul Harbidge, the President of GT Gold Corp. (CVE:GTT) recently shelled out CA$76k to buy stock, at CA$1.02 per share. That might not be a big purchase but it only increased their holding by %, and could be interpreted as a good sign.
GT Gold Insider Transactions Over The Last Year
Notably, that recent purchase by President Paul Harbidge was not the only time they bought GT Gold shares this year. Earlier in the year, they paid CA$1.02 per share in a CA$76k purchase. That means that even when the share price was higher than CA$1.00 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 391950 shares worth CA$313k. On the other hand they divested 37412 shares, for CA$67k. In the last twelve months there was more buying than selling by GT Gold insiders. They paid about CA$0.80 on average. We don’t deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today’s share price. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
GT Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does GT Gold Boast High 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. We usually like to see fairly high levels of insider ownership. Insiders own 12% of GT Gold shares, worth about CA$14m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The GT Gold Insider Transactions Indicate?
The recent insider purchases are heartening. 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. When combined with notable insider ownership, these factors suggest GT Gold insiders are well aligned, and that they may think the share price is too low. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.
But note: GT 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, but not derivative transactions.
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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.