David Adamson Bought 41% More Shares In Solstice Gold

Whilst it may not be a huge deal, we thought it was good to see that the Solstice Gold Corp. (CVE:SGC) Executive Chairman, David Adamson, recently bought CA$70k worth of stock, for CA$0.025 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 41%.

View our latest analysis for Solstice Gold

The Last 12 Months Of Insider Transactions At Solstice Gold

Over the last year, we can see that the biggest insider purchase was by Lead Independent Director Blair Schultz for CA$175k worth of shares, at about CA$0.02 per share. That means that even when the share price was higher than CA$0.015 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Notably Blair Schultz was also the biggest seller.

Happily, we note that in the last year insiders paid CA$297k for 14.14m shares. But insiders sold 9.84m shares worth CA$197k. In the last twelve months there was more buying than selling by Solstice Gold insiders. 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!

Solstice 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.

Does Solstice Gold Boast High 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. Solstice Gold insiders own about CA$1.2m worth of shares. That equates to 37% of the company. 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 Does This Data Suggest About Solstice Gold Insiders?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Solstice Gold shares, given these transactions (along with notable insider ownership of the company). While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Solstice Gold is showing 5 warning signs in our investment analysis, and 4 of those are significant...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.