With Golden Pursuit Resources Up 12%, Insider Buyers Count Their Returns

Golden Pursuit Resources Ltd. (CVE:GDP) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a CA$585k rise in the company's market capitalisation, translating to a gain of 28% on their initial investment. In other words, the original CA$429.7k purchase is now worth CA$551.2k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Golden Pursuit Resources

Golden Pursuit Resources Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Kaitlyn McClay for CA$315k worth of shares, at about CA$0.10 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.14. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 3.80m shares worth CA$430k. On the other hand they divested 3.50m shares, for CA$368k. In the last twelve months there was more buying than selling by Golden Pursuit Resources insiders. 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!

Golden Pursuit Resources 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.

Insiders At Golden Pursuit Resources Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Golden Pursuit Resources. President Brian McClay shelled out CA$42k for shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Does Golden Pursuit Resources Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 35% of Golden Pursuit Resources shares, worth about CA$2.0m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Golden Pursuit Resources Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Golden Pursuit Resources and their transactions don't cause us concern. 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. Case in point: We've spotted 6 warning signs for Golden Pursuit Resources you should be aware of.

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.