Insiders Relieved After Selling AuQ Gold Mining With 12% Price Dip

Insiders at AuQ Gold Mining Inc. (CVE:AUQ) sold CA$146k worth of stock at an average price of CA$0.16 a share over the past year, making the most of their investment. The company’s market cap plunged by CA$618k after price dropped by 12% last week but insiders were able to limit their loss to an extent.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

We've discovered 5 warning signs about AuQ Gold Mining. View them for free.

AuQ Gold Mining Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the President, Glen MacDonald, sold CA$72k worth of shares at a price of CA$0.15 per share. That means that an insider was selling shares at slightly below the current price (CA$0.26). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 57% of Glen MacDonald's holding. Glen MacDonald was the only individual insider to sell over the last year.

Glen MacDonald divested 910.00k shares over the last 12 months at an average price of CA$0.16. 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!

Check out our latest analysis for AuQ Gold Mining

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Have AuQ Gold Mining Insiders Traded Recently?

In the last three months company President Glen MacDonald divested CA$2.8k worth of stock. That is not a lot. Ultimately the overall selling isn't enough to tell us much.

Does AuQ Gold Mining Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own CA$77k worth of AuQ Gold Mining stock, about 1.5% of the company. I generally like to see higher levels of ownership.

So What Do The AuQ Gold Mining Insider Transactions Indicate?

While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we're not concerned. Recent insider selling makes us a little nervous, in light of the broader picture of AuQ Gold Mining insider transactions. And we're not picking up on high enough insider ownership to give us any comfort. 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. At Simply Wall St, we found 5 warning signs for AuQ Gold Mining that deserve your attention before buying any shares.

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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.