Stock Analysis

Insiders saw their CA$1.3m investment bump up to CA$1.8m after G2 Goldfields Inc. (CVE:GTWO) soared 12% last week

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Last week, G2 Goldfields Inc. (CVE:GTWO) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 12% last week, resulting in a CA$15m increase in the company's market worth. Put another way, the original CA$1.3m acquisition is now worth CA$1.8m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for G2 Goldfields

The Last 12 Months Of Insider Transactions At G2 Goldfields

In the last twelve months, the biggest single purchase by an insider was when insider John Sheridan bought CA$1.0m worth of shares at a price of CA$0.60 per share. We do like to see buying, but this purchase was made at well below the current price of CA$0.87. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 2.12m shares worth CA$1.3m. On the other hand they divested 86.00k shares, for CA$60k. Overall, G2 Goldfields insiders were net buyers during the last year. 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!

TSXV:GTWO Insider Trading Volume March 17th 2023

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of G2 Goldfields

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 33% of G2 Goldfields shares, worth about CA$47m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About G2 Goldfields Insiders?

The fact that there have been no G2 Goldfields insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in G2 Goldfields and we see no evidence to suggest they are worried about the future. 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. Be aware that G2 Goldfields is showing 4 warning signs in our investment analysis, and 2 of those don't sit too well with us...

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, but not derivative transactions.

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