Insider Buying: The Goldsource Mines Inc. (CVE:GXS) Just Bought CA$70k Worth Of Shares

Even if it's not a huge purchase, we think it was good to see that Eric Sprott, the of Goldsource Mines Inc. (CVE:GXS) recently shelled out CA$70k to buy stock, at CA$0.14 per share. That might not be a big purchase but it only increased their holding by 1.8%, and could be interpreted as a good sign.

See our latest analysis for Goldsource Mines

The Last 12 Months Of Insider Transactions At Goldsource Mines

Notably, that recent purchase by insider Eric Sprott was not the only time they bought Goldsource Mines shares this year. They previously made an even bigger purchase of CA$3.0m worth of shares at a price of CA$0.12 per share. That implies that an insider found the current price of CA$0.13 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

Over the last year, we can see that insiders have bought 29.8m shares worth CA$3.5m. On the other hand they divested 289k shares, for CA$30k. In the last twelve months there was more buying than selling by Goldsource Mines insiders. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Does Goldsource Mines 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. We usually like to see fairly high levels of insider ownership. From our data, it seems that Goldsource Mines insiders own 12% of the company, worth about CA$4.5m. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Goldsource Mines Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Goldsource Mines insiders are expecting a bright future. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

Of course Goldsource Mines 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, but not derivative transactions.

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