With Lahontan Gold Up 17%, Insider Buyers Count Their Returns

Lahontan Gold Corp. (CVE:LG) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 17%, resulting in a CA$5.7m rise in the company's market capitalisation, translating to a gain of 132% on their initial investment. As a result, the stock they originally bought for US$584.2k is now worth US$1.35m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Lahontan Gold Insider Transactions Over The Last Year

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. We do like to see buying, but this purchase was made at well below the current price of CA$0.14. 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.

Lawrence Lepard purchased 10.02m shares over the year. The average price per share was CA$0.058. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Lahontan Gold

Lahontan Gold is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Lahontan Gold Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. 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 8.6% of Lahontan Gold shares, worth about CA$3.2m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Lahontan Gold Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Lahontan Gold insiders are expecting a bright future. While it's good to be aware of 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. When we did our research, we found 4 warning signs for Lahontan Gold (3 are concerning!) that we believe deserve your full attention.

But note: Lahontan 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 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.