Insider Buying: The Lumina Gold Corp. (CVE:LUM) Just Bought US$4.8m Worth Of Shares

Lumina Gold Corp. (CVE:LUM) shareholders (or potential shareholders) will be happy to see that insider Ross Beaty recently bought a whopping CA$4.8m worth of stock, at a price of CA$0.50. Not only is that a big swing, but it increased their holding size by 17%, which is definitely great to see.

Check out our latest analysis for Lumina Gold

The Last 12 Months Of Insider Transactions At Lumina Gold

In fact, the recent purchase by Ross Beaty was the biggest purchase of Lumina Gold shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is CA$0.62. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Lumina Gold share holders is that insiders were buying at near the current price.

In the last twelve months Lumina Gold insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by 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!

Lumina Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Lumina Gold Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Lumina Gold insiders own about CA$60m worth of shares. That equates to 29% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Lumina Gold Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Lumina Gold insiders are well aligned, and that they may think the share price is too low. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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