Independent Director Mark O'Dea Just Bought 29% More Shares In Pure Gold Mining Inc. (CVE:PGM)

By
Simply Wall St
Published
February 17, 2022
TSXV:PGM
Source: Shutterstock

Those following along with Pure Gold Mining Inc. (CVE:PGM) will no doubt be intrigued by the recent purchase of shares by Mark O'Dea, Independent Director of the company, who spent a stonking CA$895k on stock at an average price of CA$0.53. Not only is that a big swing, but it increased their holding size by 29%, which is definitely great to see.

See our latest analysis for Pure Gold Mining

Pure Gold Mining Insider Transactions Over The Last Year

Notably, that recent purchase by Mark O'Dea is the biggest insider purchase of Pure Gold Mining shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of CA$0.70. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 2.84m shares worth CA$2.5m. But insiders sold 300.00k shares worth CA$212k. In total, Pure Gold Mining insiders bought more than they sold over the last year. They paid about CA$0.88 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
TSXV:PGM Insider Trading Volume February 17th 2022

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

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 12% of Pure Gold Mining shares, worth about CA$43m. 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 Do The Pure Gold Mining Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Pure Gold Mining we think they are probably pretty confident of a bright 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. Every company has risks, and we've spotted 3 warning signs for Pure Gold Mining you should know about.

Of course Pure Gold Mining 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, but not derivative transactions.

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