The CEO, President & Director of Tembo Gold Corp. (CVE:TEM), David Scott, Just Bought 16% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Tembo Gold Corp. (CVE:TEM) CEO, President & Director, David Scott, recently bought CA$100k worth of stock, for CA$0.15 per share. That purchase might not be huge but it did increase their holding by 16%.

Check out our latest analysis for Tembo Gold

Tembo Gold Insider Transactions Over The Last Year

Notably, that recent purchase by David Scott is the biggest insider purchase of Tembo Gold shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of CA$0.15. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months Tembo Gold insiders were buying shares, but not selling. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Tembo Gold Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Tembo Gold insiders own about CA$3.0m worth of shares. That equates to 18% 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 Do The Tembo Gold Insider Transactions Indicate?

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. Given that insiders also own a fair bit of Tembo Gold we think they are probably pretty confident of a bright future. While we like knowing 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 Tembo Gold is showing 4 warning signs in our investment analysis, and 1 of those is concerning...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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