Executive Director Lawrence Jackson Just Bought 66% More Shares In Cygnus Gold Limited (ASX:CY5)

Even if it's not a huge purchase, we think it was good to see that Lawrence Jackson, the Executive Director of Cygnus Gold Limited (ASX:CY5) recently shelled out AU$130k to buy stock, at AU$0.13 per share. While that isn't the hugest buy, it actually boosted their shareholding by 66%, which is good to see.

Check out our latest analysis for Cygnus Gold

Cygnus Gold Insider Transactions Over The Last Year

In fact, the recent purchase by Lawrence Jackson was the biggest purchase of Cygnus Gold shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of AU$0.20. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid AU$290k for 2.22m shares. But insiders sold 441.52k shares worth AU$83k. In total, Cygnus Gold insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Cygnus Gold Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Cygnus Gold insiders own about AU$5.6m worth of shares. That equates to 26% 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.

So What Do The Cygnus Gold Insider Transactions Indicate?

It is good to see recent purchasing. 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. Given that insiders also own a fair bit of Cygnus Gold we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Cygnus Gold has 4 warning signs (3 are a bit unpleasant!) that deserve your attention before going any further with your analysis.

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, but not derivative transactions.

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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. 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.
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