Several Galiano Gold Insiders Sell Shares Sending Potential Negative Signal

Galiano Gold Inc. (TSE:GAU) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

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.

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 we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (CA$2.12). So it is hard to draw any strong conclusion from it. Notably Paul Wright was also the biggest buyer, having purchased CA$543k worth of shares.

Happily, we note that in the last year insiders paid CA$543k for 382.07k shares. On the other hand they divested 315.00k shares, for CA$647k. All up, insiders sold more shares in Galiano Gold than they bought, over the last year. 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!

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Insiders At Galiano Gold Have Sold Stock Recently

The last three months saw significant insider selling at Galiano Gold. In total, Independent Chairman Paul Wright dumped CA$535k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. Based on our data, Galiano Gold insiders have about 0.5% of the stock, worth approximately CA$2.7m. We consider this fairly low insider ownership.

What Might The Insider Transactions At Galiano Gold Tell Us?

An insider hasn't bought Galiano Gold stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. 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. In terms of investment risks, we've identified 2 warning signs with Galiano Gold and understanding these should be part of your investment process.

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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.