Loncor Gold Independent Director Acquires 7.1% More Stock

Investors who take an interest in Loncor Gold Inc. (TSE:LN) should definitely note that the Independent Director, Kevin Baker, recently paid CA$0.30 per share to buy CA$180k worth of the stock. Although the purchase only increased their holding by 7.1%, it is still a solid purchase in our view.

See our latest analysis for Loncor Gold

Loncor Gold Insider Transactions Over The Last Year

In fact, the recent purchase by Kevin Baker was the biggest purchase of Loncor Gold shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of CA$0.40. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid CA$405k for 1.35m shares. On the other hand they divested 500.00k shares, for CA$150k. Overall, Loncor Gold insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. It appears that Loncor Gold insiders own 23% of the company, worth about CA$14m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Loncor Gold Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Loncor Gold shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Loncor Gold. Our analysis shows 5 warning signs for Loncor Gold (3 shouldn't be ignored!) and we strongly recommend you look at these before investing.

Of course Loncor 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.