Who Has Been Buying New Gold Inc. (TSE:NGD) Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell New Gold Inc. (TSE:NGD), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for New Gold

The Last 12 Months Of Insider Transactions At New Gold

President Renaud Adams made the biggest insider purchase in the last 12 months. That single transaction was for CA$442k worth of shares at a price of CA$1.12 each. That means that an insider was happy to buy shares at around the current price of CA$1.20. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for New Gold share holders is that insiders were buying at near the current price.

In the last twelve months insiders paid CA$725k for 658k shares purchased. While New Gold insiders bought shares last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this freelist of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own CA$1.5m worth of New Gold stock, about 0.2% of the company. We prefer to see high levels of insider ownership.

So What Do The New Gold Insider Transactions Indicate?

It doesn't really mean much that no insider has traded New Gold shares in the last quarter. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if New Gold insiders bought more shares in the company. Therefore, you should should definitely take a look at this FREEreport showing analyst forecasts for New Gold.

Of course New Gold may not be the best stock to buy. So you may wish to see this freecollection of high quality companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.