Allied Gold Insiders Enjoying US$642k Appreciation On US$4.58m Investment

Allied Gold Corporation (TSE:AAUC) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 11% resulting in a CA$103m addition to the company’s market value. As a result, the stock they originally bought for US$4.58m is now worth US$5.22m.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Allied Gold

Allied Gold Insider Transactions Over The Last Year

The Director, Pierre Chenard, made the biggest insider sale in the last 12 months. That single transaction was for CA$1.8m worth of shares at a price of CA$3.65 each. That means that even when the share price was below the current price of CA$4.02, 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 47% of Pierre Chenard's holding. The only individual insider seller over the last year was Pierre Chenard.

In the last twelve months insiders purchased 1.30m shares for CA$4.6m. But they sold 750.00k shares for CA$2.7m. In the last twelve months there was more buying than selling by Allied Gold insiders. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Allied Gold Insiders Bought Stock Recently

It's good to see that Allied Gold insiders have made notable investments in the company's shares. In total, insiders bought CA$2.3m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Allied Gold insiders own 22% of the company, currently worth about CA$226m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Allied Gold Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Allied Gold. That's what I like to see! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Allied Gold.

Of course Allied Gold may not be the best stock to buy. So you may wish to see this free collection of high quality 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.