P2 Gold Inc. (CVE:PGLD) is up 10%, while insiders who purchased CA$3.8m are up 49%

P2 Gold Inc. (CVE:PGLD) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 10%, resulting in a CA$4.9m rise in the company's market capitalisation. As a result, the stock they originally bought for CA$3.8m is now worth CA$5.7m.

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.

See our latest analysis for P2 Gold

The Last 12 Months Of Insider Transactions At P2 Gold

The Director & Chief Exploration Officer Kenneth McNaughton made the biggest insider purchase in the last 12 months. That single transaction was for CA$2.5m worth of shares at a price of CA$0.50 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$0.75. 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.

Happily, we note that in the last year insiders paid CA$3.8m for 7.55m shares. On the other hand they divested 30.00k shares, for CA$20k. In total, P2 Gold insiders bought more than they sold over the last year. 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!

P2 Gold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders at P2 Gold Have Sold Stock Recently

Over the last three months, we've seen a bit of insider selling at P2 Gold. Co-Founder & Director Neville Dastoor sold just CA$20k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the selling simply isn't sufficiently substantial to be of much use as a signal.

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. We usually like to see fairly high levels of insider ownership. Insiders own 25% of P2 Gold shares, worth about CA$13m. 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 P2 Gold Insider Transactions Indicate?

Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we're not concerned. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think P2 Gold insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 7 warning signs for P2 Gold (5 are potentially serious) 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, but not derivative transactions.

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