Those following along with GT Gold Corp. (CVE:GTT) will no doubt be intrigued by the recent purchase of shares by Ashwath Mehra, Executive Chairman of the company, who spent a stonking CA$990k on stock at an average price of CA$1.25. While that only increased their holding size by 5.9%, it is still a big swing by our standards.
The Last 12 Months Of Insider Transactions At GT Gold
Notably, that recent purchase by Ashwath Mehra is the biggest insider purchase of GT Gold shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of CA$1.55. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
While GT 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. By clicking on the graph below, you can see the precise details of each insider transaction!
GT Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. GT Gold insiders own about CA$22m worth of shares. That equates to 11% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About GT Gold Insiders?
The recent insider purchases are heartening. 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. When combined with notable insider ownership, these factors suggest GT Gold insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing GT Gold. Case in point: We've spotted 2 warning signs for GT Gold you should be aware of, and 1 of these doesn't sit too well with us.
But note: GT Gold may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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This article by Simply Wall St is general in nature. 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.
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