Troilus Gold Insiders Got A Good Deal Selling At CA$0.42

Last week, Troilus Gold Corp.'s (TSE:TLG) stock jumped 25%, but insiders who sold CA$319k worth of stock in over the past year are likely to be in a better position. Selling at an average price of CA$0.42, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Troilus Gold

The Last 12 Months Of Insider Transactions At Troilus Gold

In the last twelve months, the biggest single sale by an insider was when the CEO, President & Director, C. Reid, sold CA$319k worth of shares at a price of CA$0.42 per share. That means that an insider was selling shares at slightly below the current price (CA$0.69). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 14% of C. Reid's stake. The only individual insider seller over the last year was C. Reid.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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 Of Troilus Gold

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 4.4% of Troilus Gold shares, worth about CA$8.7m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Troilus Gold Tell Us?

The fact that there have been no Troilus Gold insider transactions recently certainly doesn't bother us. The insider transactions at Troilus Gold are not inspiring us to buy. And we're not picking up on high enough insider ownership to give us any comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (2 make us uncomfortable!) that you ought to be aware of before buying any shares in Troilus Gold.

Of course Troilus 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.