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 we’ll take a look at whether insiders have been buying or selling shares in Go Cobalt Mining Corp. (CNSX:GOCO).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
The Last 12 Months Of Insider Transactions At Go Cobalt Mining
Gerald Curry made the biggest insider sale in the last 12 months. That single transaction was for CA$75k worth of shares at a price of CA$0.30 each. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of CA$0.22. So it may not tell us anything about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid CA$22k for 219.50k shares. But they sold 745.00k for CA$154k. In total, Go Cobalt Mining insiders sold more than they bought over the last year. The average sell price was around CA$0.21. We don’t gain confidence from insider selling below the recent share price of CA$0.22. But we wouldn’t put too much weight on the insider selling. You can see a visual depiction of insider transactions over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Insiders at Go Cobalt Mining Have Sold Stock Recently
We’ve seen more insider selling than insider buying at Go Cobalt Mining recently. In total, insiders sold CA$100k worth of shares in that time. On the other hand we note Director of Business & Director Donald Sheldon bought CA$1.5k worth of shares. Since the selling really does outweigh the buying, we’d say that these transactions may suggest that some insiders feel the shares are not cheap.
Does Go Cobalt Mining Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Go Cobalt Mining insiders own 34% of the company, currently worth about CA$6.1m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Go Cobalt Mining Tell Us?
Unfortunately, there has been more insider selling of Go Cobalt Mining stock, than buying, in the last three months. Zooming out, the longer term picture doesn’t give us much comfort. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’re in no rush to buy! 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.
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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 email@example.com.