As Angus Gold Inc.'s (CVE:GUS) market cap increased CA$3.5m, insiders who bought last year may be reflecting on buying more

By
Simply Wall St
Published
January 22, 2022
TSXV:GUS
Source: Shutterstock

Angus Gold Inc. (CVE:GUS) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 11%, resulting in a CA$3.5m rise in the company's market capitalisation. Put another way, the original CA$173k acquisition is now worth CA$200k.

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 Angus Gold

The Last 12 Months Of Insider Transactions At Angus Gold

Over the last year, we can see that the biggest insider purchase was by Independent Director David Cobbold for CA$135k worth of shares, at about CA$0.90 per share. We do like to see buying, but this purchase was made at well below the current price of CA$1.00. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 200.00k shares worth CA$173k. On the other hand they divested 150.00k shares, for CA$135k. In total, Angus Gold insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
TSXV:GUS Insider Trading Volume January 22nd 2022

Angus Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Angus Gold

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Angus Gold insiders own 44% of the company, worth about CA$15m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Angus Gold Tell Us?

The fact that there have been no Angus Gold insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Angus Gold insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Angus Gold. Every company has risks, and we've spotted 6 warning signs for Angus Gold (of which 3 are a bit concerning!) you should know about.

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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