Loncor Gold Insider Confidence Rewarded, Stock Hits CA$56m Market Cap

Loncor Gold Inc. (TSE:LN) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 13%, resulting in a CA$7.0m rise in the company's market capitalisation, translating to a gain of 28% on their initial investment. Put another way, the original US$230.9k acquisition is now worth US$295.3k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Loncor Gold

Loncor Gold Insider Transactions Over The Last Year

The Independent Director Kevin Baker made the biggest insider purchase in the last 12 months. That single transaction was for CA$180k worth of shares at a price of CA$0.30 each. We do like to see buying, but this purchase was made at well below the current price of CA$0.39. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid CA$231k for 767.00k shares. But insiders sold 500.00k shares worth CA$150k. Overall, Loncor Gold insiders were net buyers during the last year. 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!

Loncor 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.

Have Loncor Gold Insiders Traded Recently?

We've only seen a tiny insider purchase valued at CA$5.9k, in the last three months. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.

Does Loncor Gold Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 23% of Loncor Gold shares, worth about CA$13m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Loncor Gold Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Loncor Gold and their transactions don't cause us concern. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 4 warning signs (3 are a bit concerning!) that you ought to be aware of before buying any shares in Loncor Gold.

But note: Loncor 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.