Insiders See AU$1.31m Investment In Peregrine Gold Jump Last Week

Peregrine Gold Limited (ASX:PGD) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 14%, resulting in a AU$3.4m rise in the company's market capitalisation, translating to a gain of 93% on their initial investment. Put another way, the original AU$1.31m acquisition is now worth AU$2.52m.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Peregrine Gold Insider Transactions Over The Last Year

The insider Mark Creasy made the biggest insider purchase in the last 12 months. That single transaction was for AU$1m worth of shares at a price of AU$0.15 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.29), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Peregrine Gold insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Peregrine Gold

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 Of Peregrine Gold

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 36% of Peregrine Gold shares, worth about AU$10m. 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 Peregrine Gold Tell Us?

It doesn't really mean much that no insider has traded Peregrine Gold shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Peregrine Gold and their transactions don't cause us concern. 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. Our analysis shows 5 warning signs for Peregrine Gold (3 don't sit too well with us!) and we strongly recommend you look at these before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.