Insider Returns Down To US$22k As Galiano Gold's Stock Dips 10%

Galiano Gold Inc. (TSE:GAU) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 10% decline in the stock price. After accounting for the recent loss, the US$160.9k worth of shares they purchased is now worth US$183.0k, 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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The Last 12 Months Of Insider Transactions At Galiano Gold

In the last twelve months, the biggest single sale by an insider was when the Independent Chairman, Paul Wright, sold CA$109k worth of shares at a price of CA$1.88 per share. So what is clear is that an insider saw fit to sell at around the current price of CA$1.83. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Paul Wright was the only individual insider to sell over the last year. Notably Paul Wright was also the biggest buyer, having purchased CA$161k worth of shares.

Happily, we note that in the last year insiders paid CA$161k for 100.00k shares. On the other hand they divested 60.60k shares, for CA$109k. Overall, Galiano Gold insiders were net buyers during the last year. They paid about CA$1.61 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

See our latest analysis for Galiano Gold

Galiano Gold is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Galiano Gold Insiders Are Selling The Stock

Over the last three months, we've seen a bit of insider selling at Galiano Gold. Independent Chairman Paul Wright sold CA$109k worth of shares in that time. But CA$49k was spent on buying, too, . While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Insider Ownership Of Galiano Gold

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$2.3m 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 stark truth for Galiano Gold is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. But insiders own relatively little of the company, from what we can see. So overall it's hard to argue insiders are bullish. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Galiano Gold. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Galiano Gold.

But note: Galiano 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.