Insiders Could Have Profited By Holding onto EnviroGold Global Shares Despite 11% Drop

Even though EnviroGold Global Limited (CSE:NVRO) has fallen by 11% over the past week , insiders who sold US$1.3m worth of stock over the past year have had less luck. The average selling price of US$0.23 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, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for EnviroGold Global

The Last 12 Months Of Insider Transactions At EnviroGold Global

The Founder, David Cam, made the biggest insider sale in the last 12 months. That single transaction was for CA$1.2m worth of shares at a price of CA$0.24 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of CA$0.04. So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 3.29m shares worth CA$190k. But insiders sold 5.64m shares worth CA$1.3m. All up, insiders sold more shares in EnviroGold Global than they bought, over the last year. They sold for an average price of about US$0.23. Insider selling doesn't make us excited to buy. But the selling was at much higher prices than the current share price (CA$0.04), so it probably doesn't tell us a lot about the value on offer today. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insiders At EnviroGold Global Have Bought Stock Recently

At EnviroGold Global,over the last quarter, we have observed quite a lot more insider buying than insider selling. In fact, five insiders bought CA$149k worth of shares. On the other hand, Founder David Cam netted CA$39.7 by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership Of EnviroGold Global

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. EnviroGold Global insiders own about CA$3.8m worth of shares (which is 44% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About EnviroGold Global Insiders?

It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, EnviroGold Global insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing EnviroGold Global. Be aware that EnviroGold Global is showing 5 warning signs in our investment analysis, and 4 of those make us uncomfortable...

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com