Independent Director of Lavras Gold Picks Up 3.8% More Stock

Investors who take an interest in Lavras Gold Corp. (CVE:LGC) should definitely note that the Independent Director, Rostislav Raykov, recently paid CA$2.16 per share to buy CA$340k worth of the stock. Although the purchase only increased their holding by 3.8%, it is still a solid purchase in our view.

View our latest analysis for Lavras Gold

Lavras Gold Insider Transactions Over The Last Year

The insider Eric Sprott made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.7m worth of shares at a price of CA$1.35 each. We do like to see buying, but this purchase was made at well below the current price of CA$2.70. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Happily, we note that in the last year insiders paid CA$7.2m for 5.31m shares. But they sold 772.00k shares for CA$1.6m. In total, Lavras 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Lavras Gold is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. It appears that Lavras Gold insiders own 31% of the company, worth about CA$41m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Lavras Gold Tell Us?

The stark truth for Lavras Gold is that there has been more insider selling than insider buying in the last three months. On the other hand, the insider transactions over the last year are encouraging. It's good to see insiders are shareholders. So we're happy enough to look past some selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lavras Gold. Every company has risks, and we've spotted 7 warning signs for Lavras Gold (of which 3 are significant!) you should know about.

Of course Lavras 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.