WIA Gold Insider Buyers See Boost After Market Cap Rose AU$52m

Last week, WIA Gold Limited (ASX:WIA) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 10.0% last week, resulting in a AU$52m increase in the company's market worth, implying a 181% gain on their initial purchase. As a result, their original purchase of AU$14.4m worth of stock is now worth AU$40.5m.

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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WIA Gold Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider William Paterson bought AU$13m worth of shares at a price of AU$0.14 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.39. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 105.21m shares worth AU$14m. But insiders sold 1.17m shares worth AU$148k. Overall, WIA Gold insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for WIA Gold

WIA Gold is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

WIA Gold Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at WIA Gold. insider William Paterson spent AU$13m on stock, and there wasn't any selling. That shows some optimism about the company's future.

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. WIA Gold insiders own about AU$74m worth of shares. That equates to 13% of the company. 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 WIA 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. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in WIA Gold shares, given these transactions (along with notable insider ownership of the company). 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. Be aware that WIA Gold is showing 3 warning signs in our investment analysis, and 2 of those are a bit unpleasant...

Of course WIA Gold may not be the best stock to buy. So you may wish to see this free collection of high quality 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.