Red Lake Gold's Market Cap Up CA$754k Following Year Of Insider Stock Buying

Insiders who bought Red Lake Gold Inc. (CSE:RGLD) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$754k as a result of the stock's 30% gain over the same period. Put another way, the original CA$414.1k acquisition is now worth CA$487.9k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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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 President Ryan Kalt bought CA$192k worth of shares at a price of CA$0.055 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.065. 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 a total of 7.51m shares over the year at an average price of CA$0.055. You can see a visual depiction of insider transactions (by companies and individuals) 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!

See our latest analysis for Red Lake Gold

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. We usually like to see fairly high levels of insider ownership. Red Lake Gold insiders own about CA$1.0m worth of shares. That equates to 32% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Red Lake Gold Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Red Lake Gold and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Red Lake Gold. When we did our research, we found 6 warning signs for Red Lake Gold (5 are concerning!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.