Lahontan Gold Reaches CA$16m Market Cap Benefiting Insider Stock Buying

Insiders who bought Lahontan Gold Corp. (CVE:LG) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$2.4m as a result of the stock's 18% gain over the same period. Put another way, the original US$428.6k acquisition is now worth US$557.1k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

We've discovered 6 warning signs about Lahontan Gold. View them for free.

The Last 12 Months Of Insider Transactions At Lahontan Gold

In the last twelve months, the biggest single purchase by an insider was when insider Lawrence Lepard bought CA$429k worth of shares at a price of CA$0.05 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.065. 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.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Lahontan Gold

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 9.6% of Lahontan Gold shares, worth about CA$1.5m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Lahontan Gold Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Lahontan Gold stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 6 warning signs (3 are a bit concerning!) that you ought to be aware of before buying any shares in Lahontan Gold.

Of course Lahontan Gold 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.