Favourable Signals For Athena Gold: Numerous Insiders Acquired Stock

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Athena Gold Corporation (CSE:ATHA), that sends out a positive message to the company's shareholders.

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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Athena Gold Insider Transactions Over The Last Year

The insider John Gibbs made the biggest insider purchase in the last 12 months. That single transaction was for CA$200k worth of shares at a price of CA$0.05 each. That implies that an insider found the current price of CA$0.055 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Athena Gold share holders is that insiders were buying at near the current price.

While Athena Gold insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Athena Gold

Athena 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.

Insiders At Athena Gold Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Athena Gold. President Koby Kushner spent CA$72k on stock, and there wasn't any selling. That shows some optimism about the company's future.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Athena Gold insiders own about CA$4.1m worth of shares. That equates to 29% 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.

So What Does This Data Suggest About Athena Gold Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Athena Gold insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Athena Gold. Our analysis shows 4 warning signs for Athena Gold (3 are a bit concerning!) and we strongly recommend you look at these before investing.

But note: Athena Gold may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.