Insider Sellers Might Regret Selling Barton Gold Holdings Shares at a Lower Price Than Current Market Value

Even though Barton Gold Holdings Limited (ASX:BGD) has fallen by 10% over the past week , insiders who sold AU$3.2m worth of stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of AU$0.26 is still below the current share price.

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.

See our latest analysis for Barton Gold Holdings

Barton Gold Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Neil Rose, for AU$502k worth of shares, at about AU$0.29 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.21. So it may not shed much light on insider confidence at current levels.

In the last year Barton Gold Holdings insiders didn't buy any company stock. 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!

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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. Barton Gold Holdings insiders own about AU$18m worth of shares. That equates to 39% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Barton Gold Holdings Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Barton Gold Holdings insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Barton Gold Holdings (2 are significant!) that we believe deserve your full attention.

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.