Stock Analysis

Marathon Gold Insiders Lose Out As Stock Sinks To CA$0.65

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Insiders who bought CA$205k worth of Marathon Gold Corporation's (TSE:MOZ) stock at an average buy price of CA$0.81 over the last year may be disappointed by the recent 11% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth CA$166k, which is not what they expected.

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.

Check out our latest analysis for Marathon Gold

The Last 12 Months Of Insider Transactions At Marathon Gold

Over the last year, we can see that the biggest insider purchase was by Independent Chairman Peter MacPhail for CA$156k worth of shares, at about CA$0.78 per share. That means that an insider was happy to buy shares at above the current price of CA$0.65. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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 Marathon Gold insiders bought shares during the last year, they didn't sell. 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!

TSX:MOZ Insider Trading Volume September 23rd 2023

Marathon Gold 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.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Marathon Gold insiders have about 1.5% of the stock, worth approximately CA$4.0m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Marathon Gold Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Marathon Gold insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Marathon Gold. Our analysis shows 2 warning signs for Marathon Gold (1 is concerning!) and we strongly recommend you look at these before investing.

Of course Marathon 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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