Insider Buying: The Blue Star Gold Corp. (CVE:BAU) Non-Independent Director Just Bought 17% More Shares

Those following along with Blue Star Gold Corp. (CVE:BAU) will no doubt be intrigued by the recent purchase of shares by Georg Pollert, Non-Independent Director of the company, who spent a stonking CA$1.0m on stock at an average price of CA$0.08. Not only is that a big swing, but it increased their holding size by 17%, which is definitely great to see.

Check out our latest analysis for Blue Star Gold

Blue Star Gold Insider Transactions Over The Last Year

Notably, that recent purchase by Georg Pollert is the biggest insider purchase of Blue Star Gold shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.075). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. 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 Blue Star Gold insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insider Ownership of Blue Star Gold

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Blue Star Gold insiders own about CA$10m worth of shares (which is 56% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Blue Star Gold Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Blue Star Gold. That's what I like to see! While we like knowing 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. Our analysis shows 4 warning signs for Blue Star Gold (2 don't sit too well with us!) and we strongly recommend you look at them before investing.

But note: Blue Star Gold 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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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. 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.
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