GoviEx Uranium Inc. (CVE:GXU) insiders got a good deal: Sold stock currently worth CA$0.30 at US$0.45 over the past year

Even though GoviEx Uranium Inc. (CVE:GXU) stock gained 20% last week, insiders who sold US$569k worth of stock over the past year are probably better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of US$0.45, which is higher than the current price, may have been the best decision.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Before we look at these insider transactions though, you might like to know that our analysis indicates that GXU is potentially overvalued!

The Last 12 Months Of Insider Transactions At GoviEx Uranium

In the last twelve months, the biggest single sale by an insider was when the Independent Director, David Cates, sold CA$139k worth of shares at a price of CA$0.41 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$0.30. So it is hard to draw any strong conclusion from it.

Insiders in GoviEx Uranium didn't buy any shares in the last year. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of GoviEx Uranium

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. GoviEx Uranium insiders own about CA$23m worth of shares. That equates to 13% of the company. 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 Do The GoviEx Uranium Insider Transactions Indicate?

The fact that there have been no GoviEx Uranium insider transactions recently certainly doesn't bother us. Still, the insider transactions at GoviEx Uranium in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. While we like knowing 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 GoviEx Uranium is showing 4 warning signs in our investment analysis, and 3 of those are potentially serious...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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