Red Lake Gold Decline Means Insider Profits Down To CA$101k

Red Lake Gold Inc. (CSE:RGLD) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 13% decline in the stock price. After accounting for the recent loss, the CA$101.1k worth of shares they purchased is now worth CA$202.0k, suggesting a good return on their investment.

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.

Check out our latest analysis for Red Lake Gold

The Last 12 Months Of Insider Transactions At Red Lake Gold

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Ryan Kalt bought CA$100k worth of shares at a price of CA$0.05 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.10. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Ryan Kalt bought 2.02m shares over the last 12 months at an average price of CA$0.05. 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 insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Red Lake Gold Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 20% of Red Lake Gold shares, worth about CA$819k. 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 Red Lake Gold Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. Insiders own shares in Red Lake Gold and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Red Lake Gold has 3 warning signs (2 are a bit concerning!) that deserve your attention before going any further with your analysis.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com