Trade Alert: Richard Hains At RTG Mining Inc. (TSE:RTG), Has Just Spent US$241k Buying 1.2% More Shares

By
Simply Wall St
Published
December 17, 2020
TSX:RTG
Source: Shutterstock

Investors who take an interest in RTG Mining Inc. (TSE:RTG) should definitely note that insider Richard Hains recently paid CA$0.19 per share to buy CA$241k worth of the stock. Although the purchase only increased their holding by 1.2%, it is still a solid purchase in our view.

See our latest analysis for RTG Mining

RTG Mining Insider Transactions Over The Last Year

In fact, the recent purchase by insider Richard Hains was not their only acquisition of RTG Mining shares this year. Earlier in the year, they paid CA$0.054 per share in a CA$902k purchase. Even though the purchase was made at a significantly lower price than the recent price (CA$0.21), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Richard Hains bought a total of 38.27m shares over the year at an average price of CA$0.067. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
TSX:RTG Insider Trading Volume December 18th 2020

RTG Mining is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of RTG Mining

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. RTG Mining insiders own about CA$43m worth of shares. That equates to 29% 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.

So What Do The RTG Mining Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of RTG Mining we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 3 warning signs for RTG Mining that deserve your attention before buying any shares.

But note: RTG Mining 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, but not derivative transactions.

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