WIA Gold Gains 10.0%, Insider Trades Reap Benefit

Insiders who bought WIA Gold Limited (ASX:WIA) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$11m as a result of the stock's 10.0% gain over the same period. As a result, their original purchase of AU$366.4k worth of stock is now worth AU$1.09m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for WIA Gold

WIA Gold Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Josef El-Raghy for AU$215k worth of shares, at about AU$0.039 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.11. 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.

In the last twelve months insiders purchased 9.91m shares for AU$366k. But they sold 5.20m shares for AU$166k. In total, WIA Gold insiders bought more than they sold over the last year. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does WIA Gold Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that WIA Gold insiders own about AU$15m worth of shares (which is 12% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The WIA Gold Insider Transactions Indicate?

The fact that there have been no WIA Gold insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in WIA Gold and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that WIA Gold has 4 warning signs (3 are significant!) that deserve your attention before going any further with your analysis.

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.