Patagonia Gold Insiders Are Down US$33k But Regain Some Losses

Some of the losses seen by insiders who purchased US$118.0k worth of Patagonia Gold Corp. (CVE:PGDC) shares over the past year were recovered after the stock increased by 13% over the past week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$33k since the time of purchase.

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.

View our latest analysis for Patagonia Gold

The Last 12 Months Of Insider Transactions At Patagonia Gold

The Independent Director Timothy Hunt made the biggest insider purchase in the last 12 months. That single transaction was for CA$93k worth of shares at a price of CA$0.11 each. That means that even when the share price was higher than CA$0.045 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 1.90m shares worth CA$118k. On the other hand they divested 5.00k shares, for CA$100.0. In total, Patagonia Gold insiders bought more than they sold over the last year. They paid about CA$0.062 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Patagonia Gold is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

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. Patagonia Gold insiders own about CA$14m worth of shares (which is 65% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Patagonia Gold Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Patagonia Gold insiders feel good about the company's future. 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. Be aware that Patagonia Gold is showing 4 warning signs in our investment analysis, and 3 of those are potentially serious...

Of course Patagonia Gold 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.