Insider Stock Buying Reaches CA$2.94m On Goldshore Resources

Quite a few insiders have dramatically grown their holdings in Goldshore Resources Inc. (CVE:GSHR) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

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.

View our latest analysis for Goldshore Resources

Goldshore Resources Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Brian Paes-Braga for CA$1.0m worth of shares, at about CA$0.38 per share. That means that an insider was happy to buy shares at above the current price of CA$0.29. 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. 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.

Over the last year, we can see that insiders have bought 10.08m shares worth CA$2.9m. On the other hand they divested 173.00k shares, for CA$51k. Overall, Goldshore Resources insiders were net buyers during the last year. Their average price was about CA$0.29. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Goldshore Resources is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Goldshore Resources Insiders Bought Stock Recently

It's good to see that Goldshore Resources insiders have made notable investments in the company's shares. Specifically, insider Brian Paes-Braga bought CA$289k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Does Goldshore Resources 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 18% of Goldshore Resources shares, worth about CA$16m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Goldshore Resources Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Goldshore Resources insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Goldshore Resources (1 is potentially serious!) that we believe deserve your full attention.

Of course Goldshore Resources 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 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.