TDG Gold Insiders Up CA$273k On CA$1.44m Investment

Insiders who purchased TDG Gold Corp. (CVE:TDG) shares in the past 12 months are unlikely to be deeply impacted by the stock's 22% decline over the past week. After accounting for the recent loss, the CA$1.44m worth of shares they purchased is now worth CA$1.72m, suggesting a good return on their investment.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for TDG Gold

The Last 12 Months Of Insider Transactions At TDG Gold

In the last twelve months, the biggest single purchase by an insider was when Independent Director Michael Kosowan bought CA$550k worth of shares at a price of CA$0.50 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$0.46). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. 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.

In the last twelve months TDG Gold insiders were buying shares, but not selling. Their average price was about CA$0.39. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

TDG 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.

TDG Gold Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at TDG Gold. Overall, two insiders shelled out CA$1.3m for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

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. From our data, it seems that TDG Gold insiders own 13% of the company, worth about CA$12m. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At TDG Gold Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of TDG Gold 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. When we did our research, we found 5 warning signs for TDG Gold (3 can't be ignored!) that we believe deserve your full attention.

But note: TDG Gold may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.