Mayfair Gold Up 11%, Insider Buyers Are Up 24%

Insiders who bought Mayfair Gold Corp. (CVE:MFG) stock in the last 12 months were richly rewarded last week. The company's market value increased by CA$29m as a result of the stock's 11% gain over the same period. Put another way, the original CA$1.28m acquisition is now worth CA$1.58m.

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.

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Mayfair Gold Insider Transactions Over The Last Year

The insider Nicholas Campbell made the biggest insider purchase in the last 12 months. That single transaction was for CA$507k worth of shares at a price of CA$1.65 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$2.15. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months Mayfair Gold insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Mayfair Gold

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Mayfair Gold Insiders Bought Stock Recently

Over the last quarter, Mayfair Gold insiders have spent a meaningful amount on shares. In total, insiders bought CA$720k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Mayfair Gold insiders own 18% of the company, worth about CA$49m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Mayfair Gold Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Mayfair Gold insiders are well aligned, and that they may think the share price is too low. 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. To that end, you should learn about the 3 warning signs we've spotted with Mayfair Gold (including 2 which are significant).

But note: Mayfair Gold may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.