Sixty North Gold Mining Insider Buyers Net CA$87k Despite 12% Stock Decline

Insiders who bought Sixty North Gold Mining Ltd. (CSE:SXTY) in the last 12 months may probably not pay attention to the stock's recent 12% drop. After accounting for the recent loss, the CA$175.4k worth of shares they purchased is now worth CA$262.3k, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Sixty North Gold Mining Insider Transactions Over The Last Year

Notably, that recent sale by David Webb is the biggest insider sale of Sixty North Gold Mining shares that we've seen in the last year. That means that even when the share price was below the current price of CA$0.14, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 9.3% of David Webb's holding.

Happily, we note that in the last year insiders paid CA$175k for 1.81m shares. On the other hand they divested 1.00m shares, for CA$125k. In total, Sixty North Gold Mining insiders bought more than they sold over the last year. 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!

View our latest analysis for Sixty North Gold Mining

Sixty North Gold Mining 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.

Sixty North Gold Mining Insiders Are Selling The Stock

The last three months saw significant insider selling at Sixty North Gold Mining. Specifically, President David Webb ditched CA$125k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Sixty North Gold Mining insiders own about CA$2.7m worth of shares. That equates to 36% 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 Does This Data Suggest About Sixty North Gold Mining Insiders?

An insider sold stock recently, but they haven't been buying. But we take heart from prior transactions. And insiders do own shares. So we're happy enough to look past some selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sixty North Gold Mining. To help with this, we've discovered 4 warning signs (3 are concerning!) that you ought to be aware of before buying any shares in Sixty North Gold Mining.

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.