It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Green River Gold Corp. (CNSX:CCR).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Check out our latest analysis for Green River Gold
Green River Gold Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CFO, Secretary & Director Shawn Stockdale bought CA$88k worth of shares at a price of CA$0.07 per share. So it’s clear an insider wanted to buy, even at a higher price. Their view may have changed since then, but at least it shows they felt optimistic at the time. We generally consider it a positive if insiders have been buying on market, even above the current price. Notably Shawn Stockdale was also the biggest seller, having sold CA$88k worth of shares.
In the last twelve months insiders purchased 1.33m shares for CA$92k. On the other hand they divested 1.25m shares, for CA$88k. In total, Green River Gold insiders bought more than they sold over the last year. The average buy price was around CA$0.069. This is nice to see since it implies that insiders might see value around current prices (around CA$0.06). You can see the insider transactions over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Have Green River Gold Insiders Traded Recently?
Director Vern Kibblewhite bought just CA$4.8k worth of shares in that time. That’s not much at all. Looking at the net result, we don’t think these recent trades shed much light on how insiders, as a group, are feeling about the company’s prospects.
Insider Ownership of Green River Gold
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Green River Gold insiders own about CA$80k worth of shares (which is 6.2% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Green River Gold Insider Transactions Indicate?
Our data shows a little more insider buying than selling in the last three months. But the difference isn’t much. However, our analysis of transactions over the last year is heartening. The transactions are fine but it’d be more encouraging if Green River Gold insiders bought more shares in the company. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.