i-80 Gold Insiders Enjoying US$707k Appreciation On US$2.79m Investment

Last week, i-80 Gold Corp. (TSE:IAU) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 19% last week, resulting in a CA$83m increase in the company's market worth, implying a 25% gain on their initial purchase. In other words, the original US$2.79m purchase is now worth US$3.50m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for i-80 Gold

i-80 Gold Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO & Director Richard Young for CA$1.0m worth of shares, at about CA$1.52 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$1.17). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 2.99m shares worth CA$2.8m. But insiders sold 130.00k shares worth CA$255k. Overall, i-80 Gold insiders were net buyers during the last year. The average buy price was around CA$0.93. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

i-80 Gold is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

i-80 Gold Insiders Bought Stock Recently

There was some insider buying at i-80 Gold over the last quarter. SVP & General Counsel David Savarie shelled out CA$22k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. i-80 Gold insiders own about CA$50m worth of shares. That equates to 10.0% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At i-80 Gold Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think i-80 Gold insiders are doubting the company, and they do own shares. 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, i-80 Gold has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

Of course i-80 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.