Multiple insiders secured a larger position in Lincoln Gold Mining Inc. (CVE:LMG) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Lincoln Gold Mining
The Chairman of the Board Ian Rogers made the biggest insider purchase in the last 12 months. That single transaction was for CA$900k worth of shares at a price of CA$0.20 each. That implies that an insider found the current price of CA$0.21 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Lincoln Gold Mining insiders decided to buy shares at close to current prices.
Lincoln Gold Mining insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Lincoln Gold Mining
Lincoln Gold Mining is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Lincoln Gold Mining Have Bought Stock Recently
It's good to see that Lincoln Gold Mining insiders have made notable investments in the company's shares. In total, insiders bought CA$901k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Insider Ownership Of Lincoln Gold Mining
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. Lincoln Gold Mining insiders own 41% of the company, currently worth about CA$2.1m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Lincoln Gold Mining Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Lincoln Gold Mining. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lincoln Gold Mining. To assist with this, we've discovered 6 warning signs that you should run your eye over to get a better picture of Lincoln Gold Mining.
Of course Lincoln Gold Mining 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.