Leigh Junk Is The MD, CEO & Director of Dacian Gold Limited (ASX:DCN) And They Just Picked Up 104% More Shares

Potential Dacian Gold Limited (ASX:DCN) shareholders may wish to note that the MD, CEO & Director, Leigh Junk, recently bought AU$351k worth of stock, paying AU$0.35 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 104%, potentially signalling some real optimism.

Check out our latest analysis for Dacian Gold

Dacian Gold Insider Transactions Over The Last Year

In fact, the recent purchase by Leigh Junk was the biggest purchase of Dacian Gold shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is AU$0.36. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Dacian Gold insider decided to buy shares at close to current prices. Leigh Junk was the only individual insider to buy during the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. 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).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Dacian Gold insiders own about AU$18m worth of shares. That equates to 9.0% 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 Dacian Gold Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Dacian Gold insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dacian Gold. Every company has risks, and we've spotted 1 warning sign for Dacian Gold you should know about.

Of course Dacian Gold may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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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