Lake Victoria Gold Insiders Benefit From Selling Stock At CA$0.17

Lake Victoria Gold Ltd.'s (CVE:LVG) stock rose 14% last week, but insiders who sold CA$170k worth of stock over the last year are probably in a more advantageous position. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of CA$0.17, which is higher than the current price, may have been the best decision.

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.

See our latest analysis for Lake Victoria Gold

The Last 12 Months Of Insider Transactions At Lake Victoria Gold

Over the last year, we can see that the biggest insider sale was by the Executive Chairman & CFO, Simon Benstead, for CA$170k worth of shares, at about CA$0.17 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$0.20. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 7.3% of Simon Benstead's stake. The only individual insider seller over the last year was Simon Benstead. Notably Simon Benstead was also the biggest buyer, having purchased CA$93k worth of shares.

In the last twelve months insiders purchased 520.00k shares for CA$93k. But insiders sold 1.00m shares worth CA$170k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Lake Victoria Gold insiders own 20% of the company, worth about CA$4.3m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Lake Victoria Gold Insider Transactions Indicate?

The fact that there have been no Lake Victoria Gold insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Lake Victoria Gold insiders. But it's good to see that insiders own shares in the company. While we like knowing 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. To that end, you should learn about the 5 warning signs we've spotted with Lake Victoria Gold (including 3 which are concerning).

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 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.