Insiders' CA$4.63m Investments In Red Following Endurance Gold's CA$2.6m Dip In Market Value

The recent price decline of 10.0% in Endurance Gold Corporation's (CVE:EDG) stock may have disappointed insiders who bought CA$4.63m worth of shares at an average price of CA$0.20 in the past 12 months. 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$3.09m which is not ideal.

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.

Check out our latest analysis for Endurance Gold

Endurance Gold Insider Transactions Over The Last Year

The Independent Director Richard Gilliam made the biggest insider purchase in the last 12 months. That single transaction was for CA$4.0m worth of shares at a price of CA$0.20 each. That means that an insider was happy to buy shares at above the current price of CA$0.14. 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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Endurance 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!

Endurance Gold is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Endurance Gold Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Endurance Gold. Overall, three insiders shelled out CA$4.0m for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Insider Ownership Of Endurance Gold

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Endurance Gold insiders own 53% of the company, worth about CA$13m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Endurance Gold Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. 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 Endurance Gold. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 5 warning signs for Endurance Gold (2 don't sit too well with us!) and we strongly recommend you look at these before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com