Even if it's not a huge purchase, we think it was good to see that Andrew Wray, the President of Golden Star Resources Ltd. (TSE:GSC) recently shelled out CA$132k to buy stock, at CA$3.88 per share. While that isn't the hugest buy, it actually boosted their shareholding by 91%, which is good to see.
Check out our latest analysis for Golden Star Resources
The Last 12 Months Of Insider Transactions At Golden Star Resources
Notably, that recent purchase by President Andrew Wray was not the only time they bought Golden Star Resources shares this year. Earlier in the year, they paid CA$4.24 per share in a CA$159k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$3.91). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Golden Star Resources insiders bought shares last year, they didn't sell. The chart below shows insider transactions (by 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!
Golden Star Resources is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Golden Star Resources Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Our data suggests Golden Star Resources insiders own 0.5% of the company, worth about CA$2.1m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.
What Might The Insider Transactions At Golden Star Resources Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Golden Star Resources insiders are reasonably well aligned, and optimistic for the future. 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. For example - Golden Star Resources has 2 warning signs we think you should be aware of.
Of course Golden Star Resources 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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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