Multiple Insiders Sold Equinox Gold Shares Presenting Weak Signs For Investors

Equinox Gold Corp. (TSE:EQX) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Equinox Gold

Equinox Gold Insider Transactions Over The Last Year

The Lead Independent Director, Lenard Boggio, made the biggest insider sale in the last 12 months. That single transaction was for CA$402k worth of shares at a price of CA$7.62 each. So what is clear is that an insider saw fit to sell at around the current price of CA$7.53. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In total, Equinox Gold insiders sold more than they bought over 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Have Equinox Gold Insiders Traded Recently?

In the last quarter we saw General Counsel & Corporate Secretary Susan Toews spend CA$54k on shares. That's only a tiny bit more than the sales, worth CA$54k. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.

Does Equinox Gold Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Equinox Gold insiders own 6.2% of the company, currently worth about CA$212m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Equinox Gold Insiders?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. While we gain confidence from high insider ownership of Equinox Gold, we can't say the same about their transactions in the last year, in the absence of further purchases. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 3 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in Equinox Gold.

But note: Equinox 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 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.