Bullish Savannah Goldfields Insiders Loaded Up On AU$1.28m Of Stock

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Savannah Goldfields Limited's (ASX:SVG) instance, it's good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

We've discovered 5 warning signs about Savannah Goldfields. View them for free.

Savannah Goldfields Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Wesley Maas for AU$367k worth of shares, at about AU$0.015 per share. That implies that an insider found the current price of AU$0.016 per share to be enticing. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.

Savannah Goldfields 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. 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 Savannah Goldfields

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Savannah Goldfields Insiders Bought Stock Recently

It's good to see that Savannah Goldfields insiders have made notable investments in the company's shares. Overall, six insiders shelled out AU$1.3m for shares in the company -- and none sold. This makes one think the business has some good points.

Does Savannah Goldfields Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 34% of Savannah Goldfields shares, worth about AU$3.5m. 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 Savannah Goldfields Insiders?

It is good to see recent purchasing. 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. Given that insiders also own a fair bit of Savannah Goldfields we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Savannah Goldfields. While conducting our analysis, we found that Savannah Goldfields has 5 warning signs and it would be unwise to ignore these.

But note: Savannah Goldfields 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.