Insider Spends CA$192k Buying More Shares In Red Lake Gold

Potential Red Lake Gold Inc. (CSE:RGLD) shareholders may wish to note that the Executive Chairman, Ryan Kalt, recently bought CA$192k worth of stock, paying CA$0.055 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 43%.

Check out our latest analysis for Red Lake Gold

The Last 12 Months Of Insider Transactions At Red Lake Gold

In fact, the recent purchase by Ryan Kalt was the biggest purchase of Red Lake Gold shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of CA$0.10. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Ryan Kalt bought a total of 5.54m shares over the year at an average price of CA$0.053. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Red Lake Gold is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

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. Red Lake Gold insiders own about CA$1.2m worth of shares. That equates to 28% 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 Do The Red Lake Gold Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Red Lake Gold insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 4 warning signs for Red Lake Gold (3 are concerning!) and we strongly recommend you look at these before investing.

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 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.