Insider Spends CA$510k Buying More Shares In Lavras Gold

Investors who take an interest in Lavras Gold Corp. (CVE:LGC) should definitely note that the Independent Director, Rostislav Raykov, recently paid CA$2.14 per share to buy CA$510k 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 sale in the last 12 months. That single transaction was for CA$1.0m worth of shares at a price of CA$2.55 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (CA$2.24). So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid CA$10m for 5.34m shares. But insiders sold 1.86m shares worth CA$4.2m. Overall, Lavras Gold insiders were net buyers during the last year. The average buy price was around CA$1.89. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Lavras Gold insiders own about CA$39m worth of shares. That equates to 30% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Lavras Gold Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Lavras Gold shares, given these transactions (along with notable insider ownership of the company). 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. For example, Lavras Gold has 3 warning signs (and 2 which are concerning) we think 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.