Insider Sellers Might Regret Selling EnviroGold Global Shares at a Lower Price Than Current Market Value

Despite the fact that EnviroGold Global Limited's (CSE:NVRO) value has dropped 14% in the last week insiders who sold US$1.3m worth of stock in the past 12 months have had less success. The average selling price of US$0.22 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for EnviroGold Global

The Last 12 Months Of Insider Transactions At EnviroGold Global

Over the last year, we can see that the biggest insider sale was by the Founder, David Cam, for CA$1.2m worth of shares, at about CA$0.24 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (CA$0.06). So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 3.82m shares for CA$195k. But insiders sold 6.01m shares worth CA$1.3m. Over the last year we saw more insider selling of EnviroGold Global shares, than buying. 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!

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Are EnviroGold Global Insiders Buying Or Selling?

We saw Independent Director Harold Wolkin buy shares worth CA$25k in the last three months. That's only a tiny bit more than the sales, worth CA$24k. Overall, we don't think these recent trades are particularly informative, one way or the other.

Insider Ownership Of EnviroGold Global

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that EnviroGold Global insiders own 40% of the company, worth about CA$6.1m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At EnviroGold Global Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. While we gain confidence from high insider ownership of EnviroGold Global, we can't say the same about their transactions in the last year, in the absence of further purchases. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing EnviroGold Global. To help with this, we've discovered 5 warning signs (2 are potentially serious!) that you ought to be aware of before buying any shares in EnviroGold Global.

Of course EnviroGold Global 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.