Trade Alert: Executive Chairman & Secretary Of Soma Gold Christopher Hampson Has Sold Stock

Anyone interested in Soma Gold Corp. (CVE:SOMA) should probably be aware that the Executive Chairman & Secretary, Christopher Hampson, recently divested CA$255k worth of shares in the company, at an average price of CA$0.51 each. That sale was 45% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Soma Gold

Soma Gold Insider Transactions Over The Last Year

Notably, that recent sale by Executive Chairman & Secretary Christopher Hampson was not the only time they sold Soma Gold shares this year. They previously made an even bigger sale of -CA$315k worth of shares at a price of CA$0.45 per share. That means that an insider was selling shares at slightly below the current price (CA$0.61). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 32%of Christopher Hampson's holding.

All up, insiders sold more shares in Soma Gold than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Soma Gold better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Soma 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Soma Gold insiders own 47% of the company, currently worth about CA$26m based on the recent share price. 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 Soma Gold Tell Us?

The insider sales have outweighed the insider buying, at Soma Gold, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Soma Gold makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. While conducting our analysis, we found that Soma Gold has 3 warning signs and it would be unwise to ignore them.

Of course Soma 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.