Insider Buyers At Gabriel Resources Sitting On CA$799k Profit

Gabriel Resources Ltd. (CVE:GBU) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 10.0% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of CA$998.8k is now worth CA$1.80m.

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.

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Gabriel Resources Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Non-Independent Director Dag Cramer bought CA$999k worth of shares at a price of CA$0.05 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.09), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Gabriel Resources

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Gabriel Resources

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Gabriel Resources insiders own about CA$1.6m worth of shares (which is 6.2% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Gabriel Resources Insider Transactions Indicate?

The fact that there have been no Gabriel Resources insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Gabriel Resources stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gabriel Resources. When we did our research, we found 5 warning signs for Gabriel Resources (4 are a bit concerning!) that we believe deserve your full attention.

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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.