Colin Bourke Buys 7.4% More Flynn Gold Shares

Whilst it may not be a huge deal, we thought it was good to see that Colin Bourke, who is a company insider, recently bought AU$86k worth of stock, for AU$0.029 per share. However, it only increased their shares held by 7.4%, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Flynn Gold

Flynn Gold Insider Transactions Over The Last Year

In fact, the recent purchase by insider Colin Bourke was not their only acquisition of Flynn Gold shares this year. Earlier in the year, they paid AU$0.085 per share in a AU$1.0m purchase. That means that even when the share price was higher than AU$0.028 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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. We note that Colin Bourke was also the biggest seller.

Happily, we note that in the last year insiders paid AU$1.5m for 28.25m shares. But they sold 780.00k shares for AU$39k. In total, Flynn Gold insiders bought more than they sold over the last year. They paid about AU$0.053 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Flynn Gold insiders own 39% of the company, worth about AU$2.8m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Flynn Gold Tell Us?

It's certainly positive to see the recent insider purchase. 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 Flynn Gold we think they are probably pretty confident of a bright future. While it's good to be aware of 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. While conducting our analysis, we found that Flynn Gold has 3 warning signs and it would be unwise to ignore them.

But note: Flynn 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 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.