Goldcliff Resource Insiders Still CA$85k Away From Original Investment Value

Some of the losses seen by insiders who purchased CA$159.8k worth of Goldcliff Resource Corporation (CVE:GCN) shares over the past year were recovered after the stock increased by 25% over the past week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled CA$85k since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Goldcliff Resource

The Last 12 Months Of Insider Transactions At Goldcliff Resource

In the last twelve months, the biggest single purchase by an insider was when President George Sanders bought CA$150k worth of shares at a price of CA$0.06 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.025). 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Goldcliff Resource insiders bought shares during the last year, they didn't sell. They paid about CA$0.053 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Goldcliff Resource is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Goldcliff Resource Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. Goldcliff Resource insiders own about CA$533k worth of shares. That equates to 40% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Goldcliff Resource Insiders?

It doesn't really mean much that no insider has traded Goldcliff Resource shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Goldcliff Resource and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Goldcliff Resource has 6 warning signs (5 are concerning!) that deserve your attention before going any further with your analysis.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.