- Metals and Mining
Insiders who bought in the last 12 months lose an additional CA$40k as Contact Gold Corp. (CVE:C) drops to CA$5.3m
Insiders who acquired CA$134k worth of Contact Gold Corp.'s (CVE:C) stock at an average price of CA$0.021 in the past 12 months may be dismayed by the recent 25% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth CA$94k which is not ideal.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Contact Gold
Contact Gold Insider Transactions Over The Last Year
The Independent Chairman of the Board John Dorward made the biggest insider purchase in the last 12 months. That single transaction was for CA$100k worth of shares at a price of CA$0.02 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.015). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. 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.
Contact Gold insiders may have bought shares in the last year, but they didn't sell any. 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!
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.
Insiders At Contact Gold Have Bought Stock Recently
Over the last quarter, Contact Gold insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought CA$122k worth of shares. This makes one think the business has some good points.
Does Contact Gold 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. 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 our data, it seems that Contact Gold insiders own 6.3% of the company, worth about CA$331k. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Contact Gold Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Contact Gold stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Contact Gold. At Simply Wall St, we've found that Contact Gold has 6 warning signs (5 are potentially serious!) that deserve your attention before going any further with your analysis.
Of course Contact 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, but not derivative transactions.
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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.
Contact Gold Corp., a gold exploration company, engages in the acquisition, exploration, and development of mineral properties in Canada and the United States.
Adequate balance sheet and slightly overvalued.