Galiano Gold's Stock Sinks To CA$1.70, But Insiders Sold Even Lower

Galiano Gold Inc.'s (TSE:GAU) stock price has dropped 10% in the previous week, but insiders who sold US$535k in stock over the past year have had less luck. Given that the average selling price of US$2.38 is still lower than the current share price, insiders would probably have been better off keeping their shares.

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 Galiano Gold

The Last 12 Months Of Insider Transactions At Galiano Gold

Over the last year, we can see that the biggest insider sale was by the Independent Chairman, Paul Wright, for CA$535k worth of shares, at about CA$2.41 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is CA$1.70. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Paul Wright. Notably Paul Wright was also the biggest buyer, having purchased CA$303k worth of shares.

In the last twelve months insiders purchased 189.35k shares for CA$303k. On the other hand they divested 225.00k shares, for CA$535k. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Galiano Gold better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own CA$2.2m worth of Galiano Gold stock, about 0.5% of the company. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Galiano Gold Tell Us?

The fact that there have been no Galiano Gold insider transactions recently certainly doesn't bother us. Our analysis of Galiano Gold insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. Of course, the future is what matters most. So if you are interested in Galiano Gold, you should check out this free report on analyst forecasts for the company.

Of course Galiano 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.