Insider Stock Buying Reaches US$793k On Centerra Gold

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Centerra Gold Inc. (TSE:CG), that sends out a positive message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Centerra Gold

Centerra Gold Insider Transactions Over The Last Year

The Director Paul Wright made the biggest insider purchase in the last 12 months. That single transaction was for CA$261k worth of shares at a price of CA$6.96 each. We do like to see buying, but this purchase was made at well below the current price of CA$8.28. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 115.39k shares for CA$793k. But insiders sold 5.00k shares worth CA$36k. Overall, Centerra Gold insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Centerra Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Centerra Gold Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Centerra Gold. Not only was there no selling that we can see, but they collectively bought CA$174k worth of shares. This makes one think the business has some good points.

Does Centerra Gold Boast High 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. Our data suggests Centerra Gold insiders own 0.2% of the company, worth about CA$3.7m. We prefer to see high levels of insider ownership.

So What Do The Centerra Gold Insider Transactions Indicate?

It is good to see recent purchasing. 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Centerra Gold stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Centerra Gold and understanding it should be part of your investment process.

But note: Centerra Gold may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

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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.