Insider Buying: Dome Gold Mines Non-Executive Director Bought AU$93k Of Shares

Whilst it may not be a huge deal, we thought it was good to see that the Dome Gold Mines Ltd (ASX:DME) Non-Executive Director, Tadao Tsubata, recently bought AU$93k worth of stock, for AU$0.35 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

View our latest analysis for Dome Gold Mines

The Last 12 Months Of Insider Transactions At Dome Gold Mines

In fact, the recent purchase by Non-Executive Director Tadao Tsubata was not their only trade of Dome Gold Mines shares this year. Earlier in the year, they sold shares at a price ofAU$0.18 per share in a -AU$202k transaction. So what is clear is that an insider saw fit to sell at around the current price of AU$0.17. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Tadao Tsubata ditched 1.94m shares over the year. The average price per share was AU$0.18. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 23% of Dome Gold Mines shares, worth about AU$14m. 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 Does This Data Suggest About Dome Gold Mines Insiders?

The insider sales have outweighed the insider buying, at Dome Gold Mines, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 6 warning signs for Dome Gold Mines (3 are significant!) that we believe deserve your full attention.

But note: Dome Gold Mines 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com