Insider Stock Buyers At Gold Digger Resources Recouped Some Losses This Week

Insiders who bought CA$221.0k worth of Gold Digger Resources Inc. (CSE:GDIG) stock in the last year recovered part of their losses as the stock rose by 10.0% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at CA$77k since the time of purchase.

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.

View our latest analysis for Gold Digger Resources

Gold Digger Resources Insider Transactions Over The Last Year

The insider Blair Naughty made the biggest insider purchase in the last 12 months. That single transaction was for CA$153k worth of shares at a price of CA$0.38 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.22). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Blair Naughty. We note that Blair Naughty was both the biggest buyer and the biggest seller.

Blair Naughty purchased 656.00k shares over the year. The average price per share was CA$0.34. 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!

Gold Digger Resources is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Gold Digger Resources Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Gold Digger Resources insiders own 26% of the company, worth about CA$1.2m. 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 Gold Digger Resources Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Gold Digger Resources insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gold Digger Resources. Case in point: We've spotted 4 warning signs for Gold Digger Resources you should be aware of, and 3 of these are significant.

But note: Gold Digger Resources 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.