Snowline Gold Independent Director Acquires 25% More Stock

Even if it's not a huge purchase, we think it was good to see that Calum Morrison, the Independent Director of Snowline Gold Corp. (CVE:SGD) recently shelled out CA$126k to buy stock, at CA$5.05 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 25%.

Check out our latest analysis for Snowline Gold

The Last 12 Months Of Insider Transactions At Snowline Gold

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Sarah Weber, sold CA$261k worth of shares at a price of CA$5.27 per share. So we know that an insider sold shares at around the present share price of CA$5.23. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In total, Snowline Gold insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of Snowline Gold

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Snowline Gold insiders own about CA$91m worth of shares. That equates to 11% 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.

What Might The Insider Transactions At Snowline Gold Tell Us?

It is good to see the recent insider purchase. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by Snowline Gold insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Snowline Gold. Our analysis shows 4 warning signs for Snowline Gold (2 are a bit unpleasant!) and we strongly recommend you look at these before investing.

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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.