One Gorilla Gold Mines Insider Has Reduced Their Stake

From what we can see, insiders were net sellers in Gorilla Gold Mines Ltd's (ASX:GG8 ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Gorilla Gold Mines Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Sam Wilson, sold AU$453k worth of shares at a price of AU$0.40 per share. That means that even when the share price was below the current price of AU$0.42, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 2.2% of Sam Wilson's stake. Sam Wilson was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid AU$350k for 1.67m shares. On the other hand they divested 1.13m shares, for AU$453k. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Gorilla Gold Mines

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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. We usually like to see fairly high levels of insider ownership. Insiders own 28% of Gorilla Gold Mines shares, worth about AU$85m. 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 Gorilla Gold Mines Tell Us?

It doesn't really mean much that no insider has traded Gorilla Gold Mines shares in the last quarter. Our analysis of Gorilla Gold Mines insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. 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. Case in point: We've spotted 3 warning signs for Gorilla Gold Mines you should be aware of.

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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.