Montage Gold Up 13%, Insider Buyers Are Up 51%

Montage Gold Corp. (CVE:MAU) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 13%, resulting in a CA$102m rise in the company's market capitalisation, translating to a gain of 51% on their initial investment. Put another way, the original CA$2.30m acquisition is now worth CA$3.47m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Montage Gold

The Last 12 Months Of Insider Transactions At Montage Gold

The Independent Director Anu Dhir made the biggest insider purchase in the last 12 months. That single transaction was for CA$1m worth of shares at a price of CA$1.75 each. We do like to see buying, but this purchase was made at well below the current price of CA$2.58. 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.

Over the last year, we can see that insiders have bought 1.34m shares worth CA$2.3m. On the other hand they divested 65.00k shares, for CA$93k. In the last twelve months there was more buying than selling by Montage Gold insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Montage 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 Of Montage Gold

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Montage Gold insiders own about CA$50m worth of shares. That equates to 5.8% 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 Does This Data Suggest About Montage Gold Insiders?

The fact that there have been no Montage Gold insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Montage Gold insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Montage Gold. Case in point: We've spotted 3 warning signs for Montage Gold you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.